Could someone explain the billions that are going into the stock market from the Federal Government?
There are billions going into the stock market to boost the economy. Where is the money coming from? Which stocks are being bought? Are the stocks specific to those in politics that are generating the money? Is the money tax money or is it just "created"? Is there any interest on the money? What happens if the Feds stop putting money into the market? Will the money have to be repaid or will it just vanish into stock? Who is keeping tabs on this money? Is this money creating jobs or making king-pins rich?
The federal government is spending money, investing in some companies and selling bonds and securities. The idea is to get the economy moving, much as President Franklin Roosevelt did with his new deal plan to end the depression. In Roosevelt's case the start of WWII ended the depression, but the New Deal probably made that possible.
I have always said (well not always, I say other things sometimes) that the economy is self healing. Sometimes, government action will speed up the healing and sometimes it doesn't. However, unless there is disposable income to spend, people do not buy things that are made by the companies that make up the stock market. To keep the economy moving, you have to keep the money moving by spending, selling and investing.
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