<story><title>Federal Reserve pledges asset purchases with no limit to support markets</title><url>https://www.cnbc.com/2020/03/23/fed-announces-a-slew-of-new-programs-to-help-markets-including-open-ended-asset-purchases.html</url></story><parent_chain><item><author>alexmingoia</author><text>How does injecting money solve a problem that’s not caused by lack of money? This market downturn isn’t a lack of liquidity, or a lack of money, or toxic assets like the mortgage backed securities.&lt;p&gt;People aren’t going to stores, restaurants, and airlines because of SARS-CoV-2, not a lack of credit or money.&lt;p&gt;Printing money isn’t going to create customers for businesses effected by this pandemic.</text></item></parent_chain><comment><author>CyanLite4</author><text>It stops the stock market slide. Which is more valuable than political talking points.  Eventually these bankers are going to start doing some math and see that with 0% interest rates and unlimited firepower on Treasuries, there’s going to be massive pent up demand after this medical crisis is solved. Money will be lent to everyone, including airlines and leisure companies because there’s simply no where else to put their money.  Inflation be damned.  Market is always looking 6+ months ahead. And the moment bankers see a light at the end of the tunnel, this thing is going to take off like a rocket ship.</text></comment>
<story><title>Federal Reserve pledges asset purchases with no limit to support markets</title><url>https://www.cnbc.com/2020/03/23/fed-announces-a-slew-of-new-programs-to-help-markets-including-open-ended-asset-purchases.html</url></story><parent_chain><item><author>alexmingoia</author><text>How does injecting money solve a problem that’s not caused by lack of money? This market downturn isn’t a lack of liquidity, or a lack of money, or toxic assets like the mortgage backed securities.&lt;p&gt;People aren’t going to stores, restaurants, and airlines because of SARS-CoV-2, not a lack of credit or money.&lt;p&gt;Printing money isn’t going to create customers for businesses effected by this pandemic.</text></item></parent_chain><comment><author>tonyhb</author><text>Current problem is that money right now will be &lt;i&gt;evaporating&lt;/i&gt; when loans default.&lt;p&gt;The financial system is built on itself so that loans &lt;i&gt;create&lt;/i&gt; money.  It does not expect to come to a grinding halt.  If it does, loans aren&amp;#x27;t repaid, and money literally disappears.  Deleveraging occurs.  Wealth disappears.&lt;p&gt;I think the aim is that we don&amp;#x27;t lose money from defaults over the short term.</text></comment>