/biz/ - Business & Finance

I'm writing this for the few of you that wish to gain a better understanding of what's going on to make informed decisions about the state of the economy. To put it simply, there's a huge difference between the outcome of runaway inflation vs a stock market or equity bubble, and without full knowledge of how these things work it would be impossible for you to determine what's really happening at a glance. Pic related

Healthy economic conditions wouldn't need a loan market as dire as this one, but in 2008, the fed increased reserves to such an amount that they destroyed their ability to influence interest rates or solve liquidity shortages

Unlimited repo loans are a challenge and a threat to the economy but not in the same way that runaway inflation is. The fed is in uncharted territory here. We don't really have a good understanding of exactly how that plays out

If the purpose of this board is to gain knowledge and insight into how to invest your time and money in the present to increase future value then we should do a better job understanding the implications of individual federal reserve decisions and the history beyond them