Cares Act saves Stock Market

[MorkandMindy]

Corona virus did a lot of harm to anyone holding large amounts of stock. If you had just 20,000 dollars of stock (to keep the arithmetic simple) for example when Donald Trump became President, then you would over the course of 3 years and 3 months approx, have ended up losing 1,400 dollars.

World-wide countries put loans and stimulus money into their companies and in the US Senate all 96 members present of both parties voted for the CARIES Act. In the House only 5 Republicans and 1 Democrat failed to support the Act.

And the investors were rescued!

 

[MorkandMindy]

The 1,400 loss over 3 years became after the CARIES Act a 5,475 gain over the 3+ years to today.
(figures a bit approximate)

The CARES Act was the largest ever single transfer of wealth and had strong bipartisan support

 

[essentialsaltes]

I'm still 7.5% off from that peak. Can you transfer a bit more wealth my way?

 

[MorkandMindy]

Low points are always below peaks the experts say, but the stock market is expected to continue to recover due to governments having established a precedent now and back in 2009 of bailouts. Activity in the lower parts of the economy should not harm the rewards of those who have invested in our futures.

 

[OldWiseGuy]

I can't wait for runaway inflation to begin as a result of the stimulus. Interest rates will rise and I will prosper.

 

[MorkandMindy]

Maybe, but low interest rates push investors to buy government debt and put money into the stock market in search of better returns, so governments might keep interest rates low.

If you befriended politicians with big donations I suspect they wouldn't go against the other big donors, but advise you that interest rates will stay low, so small savers will continue to do badly, and to put your money where the other big donors put theirs, and they'd even introduce you to some of their other friends for a few tips.

 

[iluvatar5150]

I can't wait for runaway inflation to begin as a result of the stimulus. Interest rates will rise and I will prosper.

Yeah, that's what the Ron/Rand Pauls have been saying for over a decade now and we haven't come anywhere close to it yet. It might be time to update your economic worldview.

 

[MorkandMindy]

My guess is the economy will go in the direction the very wealthy want it to go, because they control the government. As noticed with the CARIES Act, both parties will fall in behind any legislation that helps the very rich, after all, they do own both parties.

The parties may say different things but somehow the result is usually not all that different.

 

[OldWiseGuy]

Yeah, that's what the Ron/Rand Pauls have been saying for over a decade now and we haven't come anywhere close to it yet. It might be time to update your economic worldview.

One can only hope.

 

[OldWiseGuy]

My guess is the economy will go in the direction the very wealthy want it to go, because they control the government. As noticed with the CARIES Act, both parties will fall in behind any legislation that helps the very rich, after all, they do own both parties.

The parties may say different things but somehow the result is usually not all that different.

Better the rich than the poor don't you think?

 

[MorkandMindy]

I don't know.

Many of the rich and very rich have a very good idea of what is actually going on in the World, and can make intelligent decisions but for their own advantage and most likely to everyone else's detriment.

 

[essentialsaltes]

I'm still 7.5% off from that peak. Can you transfer a bit more wealth my way?

Thanks man, appreciate it.