HomeLatest ThreadsGreatest ThreadsForums & GroupsMy SubscriptionsMy Posts
DU Home » Latest Threads » Forums & Groups » Main » General Discussion (Forum) » Alexandria Ocasio-Cortez ... » Reply #2

Response to jimfields33 (Reply #1)

Thu Mar 26, 2020, 12:32 PM

2. The Fed does this thing.

They buy debt that's on the market and hold it. It keeps the securities market from completely tanking, keeps the financials markets liquid and working.

When they freeze, money tends to stop flowing. No short-term loans, no place to put extra cash. *Then* you have a *real* problem.

They did it in 2008/09, as well. There was around $1.5 trillion for stimulus/TARP, and something like $2 trillion put in by the Fed.

Reply to this post

Back to OP Alert abuse Link to post in-thread

Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
Please login to view edit histories.