The Economy The Wolf Cried About Wall Street deep dive

 The Economy The Wolf Cried About  Wall Street  deep dive
The Economy The Wolf Cried About  Wall Street deep dive

This March, when the pandemic brought the economy to a standstill, forcing everyone to stay at home and not go to work, this may have been the last time the stock market performed as intended. Major stocks, minor stocks, and bond markets ... all got out of bed in a sensible answer to the obvious: there will be no more money.

The huge daisy chain of corporate bonds that held the balance sheets of companies that own and operate vital parts of the economy was in danger of falling apart because the money earned to make payments could no longer be earned. Mass defaults were inevitable.

The Federal Reserve and the US Treasury, which are tasked with preventing such things from happening, have damn sure they didn't. He added money and support to get all the work going. He got hit by the bond market and turned all that junk corporate debt into virtually government bonds.

He loaned trillions to commercial banks, which provided their business clients with win-win OPP loans at their discretion. An ocean of money poured into a financial system nominally linked to the economy, which suddenly had far fewer places to make money.
With unemployment high and GDP low, markets skyrocketed. Stocks are a reflection of the future, and anyone who hasn't puzzled over supplies for Skip the Dishes has had plenty of time to dream about the future. It was during this period that we experienced a rise in performance as Katie Wood and Elon Musk took sheer fantasy and packaged it into new kinds of investment products that quickly became more valuable than smaller nation states.

When Americans lined up for food banks, and advised everyone who wanted to work to download the app and embrace the "earning economy," they got the message: There was no help for the real economy. The government is not going to build yet another Hoover Dam, interstate highway system or anything like that. This, of course, is not going to cover anyone's rent or otherwise freeze housing payments.