"Step 1 Leverage a pandemic to keep people locked up.
Step 2 Toss a few checks to the masses, let them rack up more debt w/o having to immediately pay.
Step 3 Pump most of the money for the stock market.
Step 4 Rejoice that the economy is back because hedge funds are made whole."
Make Depressions Great Again
It's official. The $SPX has moved from a forward looking economic indicator to a Wealth Inequality indicator.
The Fed has gone to such lengths to pump equity markets that now we're forced to have conversations about taxing people's unrealized gains as they have zero incentive to sell when the Fed just keeps pumping in liquidity to juice the markets. #PeakInsanity
GDP Q4 2019 = +3.6%
$SPX 10/21/2019 = 2,986
Fed Balance Sheet = $4.175T (10/17/19)
Est. GDP Q2 2020 = -35%
es_f now ($SPX futures) = 2,993
Fed Balance Sheet = $7.036T
@clumsysilverdad