Here we go. Remember the bear market? Aaaaand its gone.
How can we see 22m unemployment in the US and the stock market is bouncing back like crazy? It’s the Federal Reserve Bank, Stupid!
The Federal Reserve Bank, also called the FED, is the central bank of United States. It is the bank of banks. So literally a bank like J.P.Morgan Chase can borrow money from it and lend it to its customers. You cannot borrow directly from the FED but only from your local bank.
Oh and the FED has something we all dreamed of. It is the owner of the money printing press aka it has the money monopoly, that is why it can choose a central interest rate too. It is like magic. It can print Dollars. And boy she does. The FED is printing money at unprecedented levels. This money is affecting the stock markets, as the FED is also buying financial assets like bonds with the freshly printed Dollars. Too complicated? For now just remeber this: With more Dollars available in the financial system more Dollars are flowing in the stock market. That was easy, wasn’t it? Thats why Stonks only go up. Because the FED can print money…
Interested how this magical system works? Watch this:
If you dont give a fuck, watch this: