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.
by donrock 9 years ago
Yesterday Oblama signed the stimulus package and by the time the stock market closed the Dow was down almost 300 points.. Today he spoke about the mortgage bailout. When he started the Dow was positive and now is down 30 points the last time I checked. I guess it's not convincing a lot of investors...
by ngureco 4 years ago
Which Are The Best Trading Strategies In The Stock Market?
by ParadigmShift... 8 years ago
Explain the concept of stocks and the stock market.What determines how much stocks sell for? What exactly happens when a stock "splits?" What is the history of the stock market?
by Daniel J. Neumann 7 years ago
Do you feel confident investing money in the stock market?Why or why not?
by ngureco 9 years ago
Regarding the current long range downtrend of the stock market, I am one person who does not buy into Elliott Wave Theorists' apocalyptic views of the market. Their views and analysis of the markets may not make sense. Never, never.One such Elliott Wave Theorists is Robert Prechter Jr. In his...
by Arian Won 9 years ago
I know the stock market is bad, but I'd like to start investing as I know there are a lot of great bargains out there. So if anyone can recommend any published books that they have read themselves, I would appreciate it.
|HubPages Device ID|
|Login||This is necessary to sign in to the HubPages Service.|
|HubPages Google Analytics|
|HubPages Traffic Pixel|
|Google Hosted Libraries|
|Google AdSense Host API|
|Conversion Tracking Pixels|
|Author Google Analytics|
|Amazon Tracking Pixel|