• @[email protected]
    link
    fedilink
    English
    19 months ago

    The people who hold the stocks don’t want the stock market to go down. They want it to go up, because it means more money for them (with some exceptions. Some groups feast on volatility, but that is a smaller part of the market). As shown by the recent tech layoffs, you don’t need a recession to lay people off. In fact, it doesn’t matter when you do it, you are usually rewarded with a rising stock price. Just look at GOOG and the fact that the price of the stock has risen since they announced massive layoffs a week ago.

    On top of that, 2008 was when I really started to pay attention to markets, and the one thing I’ve learned is that there is constantly someone pointing to some metric that says a huge plunge is right around the corner. This is not something that started in 2020. It’s a near constant thing. I remember how hard it was pushed on zerohedge that a full economic collapse in the US was imminent.

    What you say sounds good, but I don’t think it accurately reflects the reality I’ve seen.

    • Snot Flickerman
      link
      fedilink
      English
      19 months ago

      https://www.cnn.com/2022/08/26/economy/federal-reserve-jerome-powell-jackson-hole-2022/index.html

      The Federal Reserve hasn’t exactly been shy about what their intended goal was with raising interest rates.

      They were trying to trigger job losses so people would have less money to spend, thus “cooling inflation.” That has been their stated goal all along.

      This has literally been years of the Fed essentially trying to trigger a recession.

      “While higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses,” said Powell.

      “I would interpret that as a willingness to see the unemployment rate creep a little higher here to get to that end of reducing demand,” said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management. A weaker labor market generally constricts consumer demand as households conserve cash in anticipation of potential job loss.

      • @[email protected]
        link
        fedilink
        English
        19 months ago

        Yeah, with the goal of avoiding something worse. Or do you think that letting the economy collapse isn’t going to lead to more job loss and more suffer? Or do you think that just letting inflation run rampant isn’t going to increase suffering across the board?

        • Snot Flickerman
          link
          fedilink
          English
          19 months ago

          Keep living in the fantasy land where Powell gives a shit what happens to you.

          • @[email protected]
            link
            fedilink
            English
            19 months ago

            You said they were open with their intent, and then proceeded to cherry-pick only what you wanted. When I point out the full context their intent, you accuse me of living in a fantasy world. This is some bizarro shit world where you’re trying to have your cake and eat it too. lol

            Also, I understand that he doesn’t give a shit about me. What he does give a shit about, a stable economy as that decreases social unrest and lines his pocket, benefits me as well. Life before the federal reserve got teeth was a nightmare for the regular joe.