People seem to not remember in 2020 that the FED bailed out Wall Street and rich investors!

[Ethnic Vagina Finder]

To the tune of $1 trillion a day for like 2 weeks.

But everyone is talking about stimulus checks as being the main culprit.

 

[OfTheCross]

Federal Reserve to lend additional $1 trillion a day to large banks

The Federal Reserve has moved with unprecedented force and speed to pump huge amounts of cash into the financial system to ease disruptions that have escalated since the viral outbreak.

www.pbs.org

The Fed’s $1.5 trillion loan injection, explained

It’s not a “stimulus” — it’s $1.5 trillion in loans that have to be paid back, fast.

www.vox.com

What did the Fed do in response to the COVID-19 crisis?

The Hutchins Center explains how the Fed reacted to the economic effects of the COVID pandemic.

www.brookings.edu

 

[Ethnic Vagina Finder]

Federal Reserve to lend additional $1 trillion a day to large banks

The Federal Reserve has moved with unprecedented force and speed to pump huge amounts of cash into the financial system to ease disruptions that have escalated since the viral outbreak.

www.pbs.org

The Fed’s $1.5 trillion loan injection, explained

It’s not a “stimulus” — it’s $1.5 trillion in loans that have to be paid back, fast.

www.vox.com

What did the Fed do in response to the COVID-19 crisis?

The Hutchins Center explains how the Fed reacted to the economic effects of the COVID pandemic.

www.brookings.edu

The mainstream media doesn’t talk about it. And Bill Maher literally forgot

 

[Hood Critic]

That's not really how that works champ...those loans had to be repaid and were lent out to banks and firms who leveraged their own bonds and assets (worth more than the loans) to guarantee repayment.

 

[Pressure]

That's not really how that works champ...those loans had to be repaid and were lent out to banks and firms who leveraged their own bonds and assets (worth more than the loans) to guarantee repayment.

You’re right, but people pushing these talking points don’t care.

 

[Ethnic Vagina Finder]

That's not really how that works champ...those loans had to be repaid and were lent out to banks and firms who leveraged their own bonds and assets (worth more than the loans) to guarantee repayment.

No shyt.

They're still bail outs

And they enabled a lot of people get increase their wealth during the pandemic. A LOT of wealthy people. Even with paying back those "loans", they still made money.

 

[LOST IN THE SAUCE]

That's not really how that works champ...those loans had to be repaid and were lent out to banks and firms who leveraged their own bonds and assets (worth more than the loans) to guarantee repayment.

Yeah, I'm going to have to agree with @Ethnic Vagina Finder here. You don't think Wall Street having all that extra capital to play with didn't effect inflation as well? Remember that during this time the 1% billionaire class was able to extract trillions in wealth from the bottom half of wealth holders. The loans didn't just keep them afloat, it allowed them to make all time record profits.

Granted I still haven't read a solid answer for what the actual, or largest, cause of inflation is, but if we're going to blame stimulus checks I don't see how this wouldn't be in the same vein, even if they had to pay it back after amassing insane profits.

 

[Ethnic Vagina Finder]

Yeah, I'm going to have to agree with @Ethnic Vagina Finder here. You don't think Wall Street having all that extra capital to play with didn't effect inflation as well? Remember that during this time the 1% billionaire class was able to extract trillions in wealth from the bottom half of wealth holders. The loans didn't just keep them afloat, it allowed them to make all time record profits.

Granted I still haven't read a solid answer for what the actual, or largest, cause of inflation is, but if we're going to blame stimulus checks I don't see how this wouldn't be in the same vein, even if they had to pay it back after amassing insane profits.

It wasn’t just one thing. It was multiple events that led to right now.

1. The fed injecting trillions into the financial markets.
2. PPP loans and the people who stole or didn’t need the money.
3. People who accumulated wealth off meme stock and investing in companies when their stock price was in the toilet that rebounded. Especially blue chip stock.


Then you have the economy in general. At one point every day commerce came to a crawl and millions of people got laid off. Once life started to get back to normal, demand rose higher than supply. On the supply side, you have 2 factors.

1. Supply chain issues. Remember all those ships that couldn’t port because of not only back logs, but they simply didn’t have enough workers. China, one of the worlds largest exporters, went on lockdown multiple times. The Russian war in Ukraine also added to it.

2. Companies that lost money in 2020 and early 2021, discovered that instead of buying 10 and sell them at $20 a piece can buy 5 and sell at $45 a piece and make MORE money selling less product.



And this infrastructure bill that passed, will go mostly to businesses and corporations.


People forget that billionaires wealth doubled during the pandemic. While scores of small businesses went under, thousands became homeless and millions working multiple jobs to stay afloat.


Real estate speculators scooped up thousands of properties, which increased the value and rents.

 

[LOST IN THE SAUCE]

It wasn’t just one thing. It was multiple events that led to right now.

1. The fed injecting trillions into the financial markets.
2. PPP loans and the people who stole or didn’t need the money.
3. People who accumulated wealth off meme stock and investing in companies when their stock price was in the toilet that rebounded. Especially blue chip stock.


Then you have the economy in general. At one point every day commerce came to a crawl and millions of people got laid off. Once life started to get back to normal, demand rose higher than supply. On the supply side, you have 2 factors.

1. Supply chain issues. Remember all those ships that couldn’t port because of not only back logs, but they simply didn’t have enough workers. China, one of the worlds largest exporters, went on lockdown multiple times. The Russian war in Ukraine also added to it.

2. Companies that lost money in 2020 and early 2021, discovered that instead of buying 10 and sell them at $20 a piece can buy 5 and sell at $45 a piece and make MORE money selling less product.



And this infrastructure bill that passed, will go mostly to businesses and corporations.


People forget that billionaires wealth doubled during the pandemic. While scores of small businesses went under, thousands became homeless and millions working multiple jobs to stay afloat.


Real estate speculators scooped up thousands of properties, which increased the value and rents.

I'm aware of all that. I just don't have enough expertise to be able to confidently claim like I fully understand. Even after all the reading I've done I still have a hard time connecting all the dots in my head to make any explanation feel definitive to me.
It makes sense if there is no single factor that was the main cause of the inflation we're experiencing but I see a lot of blame being slung around, usually targeted at the things that helped working class people.

 

[null]

That's not really how that works champ...those loans had to be repaid

are perpetual rollover loans really loans though? i think not.

does some of the profits from loans (which is not repaid) eventually become inflationary.

do assets given a fake value by the discount window become capital in further rounds of fractionalised reserved banking?

and were lent out to banks and firms who leveraged their own bonds and assets (worth more than the loans) to guarantee repayment.

junk assets .. much of it overinflated with fake values from the 2005 - 2007 and beyond excess

assets that had little to no value on the open market (hence repo markets freezing)

-

OP forget about the effects of ZIRP in addition to the QE stuff.

george gammon did a full breakdown of the FED covid rescue package and it far mmore extensive than just these two interventions.

found it !

gammon bailout 2020

 

[Kyle C. Barker]

The mainstream media doesn’t talk about it. And Bill Maher literally forgot

I saw that too. I thought he was playing dumb just to win the argument

 

[Prince.Skeletor]

I saw that too. I thought he was playing dumb just to win the argument

No he legit forgot
He actually had a monologue on it

 

[mastermind]

weren’t these loans interest free?

 

[Pressure]

weren’t these loans interest free?

From the article:

The Fed did not “spend” $1.5 trillion; it loaned the money to banks, which rely on these kinds of short-term loans as a way to get cash when most of their resources are tied up in assets like bonds. What’s more, the Fed’s loans are collateralized, meaning they are backed up by bonds worth even more than the money the Fed lent. If the banks should for some reason default on the loan, the Fed gets to keep the bonds and makes a sizable profit. If the loans are paid back, the Fed still makes a profit because it charges a modest amount of interest for the loan.

 

[Kenny West]

The Fed was buying Corporate bonds too which was an unprecedented first iirc