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A comment on Fed to buy junk bonds, lend to states in fresh virus support. Parent comment

Re:Fed to buy junk bonds, lend to states in fresh virus support by vkou on Thursday April 09, 2020 @06:02PM (#22827663)
The market isn't rallying because investors are becoming optimistic about the prospects of the real economy. The real economy is going to be a disaster, because we have no roadmap for leaving lockdown anytime soon.

It's rallying because all sorts of zombie businesses can now stay alive, thanks to the government lending them unlimited amounts of money.

All this does is it kicks the can down the road for a year.

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Re:Fed to buy junk bonds, lend to states in fresh virus support by beervirus on Thursday April 09, 2020 @07:04PM (#22828138)
The real economy might be just fine in a year.
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Re:Fed to buy junk bonds, lend to states in fresh virus support by AnimalMuppet on Friday April 10, 2020 @01:10PM (#22835009)
Might. Or might not.

If we're going to be back to normal in a year, and if stock prices were not overvalued a month ago, then prices now are too low, and it's a great time to buy.

If.

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