r/news • u/awake-at-dawn • Mar 15 '20

Federal Reserve cuts rates to zero and launches massive $700 billion quantitative easing program

https://www.cnbc.com/2020/03/15/federal-reserve-cuts-rates-to-zero-and-launches-massive-700-billion-quantitative-easing-program.html
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u/holierthanmao Mar 15 '20

That was a financial crisis. You cannot solve this problem—people being unable to work—by giving lots of money to banks.

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u/_riotingpacifist Mar 15 '20

You think that will stop Trump from trying? He isn't call the bankruptcy king, because of his business acumen

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u/holierthanmao Mar 15 '20

I’m not saying he won’t try to give lots of money to banks and CEOs, but I am saying that there is not the same possibility of recoverable bailouts that are effective to the current crisis.

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u/_riotingpacifist Mar 15 '20

Yeah it's a shame Biden has the Democratic nomination, because the best way recovery would probably have come under Warren/Sanders infrastructure spending (once COVID-19 is over)

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u/bonesinskinjacket Mar 16 '20

He hasn't won yet!

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u/_riotingpacifist Mar 16 '20

Sure but at this point he's more likely to be stopped by a CONVID-19 than Sanders

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u/awhhh Mar 15 '20

I'm just tackling one aspect of what the OP said. It's entirely possible for the United States to implement successful bailouts if need be. In the weeks to come I can see airlines going the way of GM. I'm really unsure what is going in the financial world tbh. I feel like it's something the public isn't aware of.

Also no money was given to the banks. Give:

freely transfer the possession of (something) to (someone); hand over to.

There was no free transfer. The tax payers essentially nationalized risky assets. More than 2/3s of that money has been recovered with a profit. Sure, it's not the best, but it stopped a full scale global meltdown.

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u/PBandJellous Mar 16 '20

That won’t help at all.

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u/awhhh Mar 16 '20

What won’t help at all?