End of the "Fed Put"

[Geek Nasty]

I've been watching a lot of financial forecasting videos on Youtube trying to wrap my head around what's going on. There's a really good ex-Fed employee Danielle Booth who gets interviewed a lot. Here she's talking about the Fed moving to end the policy of bailing out the economy which in her opinion is the cause for a lot of risky speculation that keeps digging holes in the US economy tax payers have to keep filling.

So, interest rates will never drop back to zero and the end of quantitative easy; the government buying assets to prop up the economy.

 

[Mike809]

so would they just let big companies to bankrupt instead of bailing them out?

 

[Geek Nasty]

so would they just let big companies to bankrupt instead of bailing them out?

I don’t remember if she addressed literal bailouts. But I think the overall idea is they won’t do it anymore. I think quantitative easing (QE) means buying ANY private assets to help failing companies.

From another video she said a couple years back she didnt think a bailout package would pass in Congress regardless.

Im not an expert just trying to understand all this myself.

 

[Geek Nasty]

Ah damn I buried the lead. Dont buy a house right now because a ton of inventory is being dumped back on the market (AirBnBs being priced out of profit) and prices are going to plummet.