U.S. Economy Shrinks at 4.8% Pace, Signaling Start of Recession

Re:U.S. Economy Shrinks at 4.8% Pace, Signaling Start of Rec... by lukker on Wednesday April 29, 2020 @11:02AM (#23020087)

There is a good free e-book that can shed a bit of light on the mechanics of why markets can rally when the real economy seems to be in deep recession.

https://www.principles.com/big-debt-crises/

Basically when money printer goes brrr then prices of financial assets tend to go up. The unfair bit about this is that these kind of assets are mostly owned by the rich, which makes the wealth gap even bigger.

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Re:U.S. Economy Shrinks at 4.8% Pace, Signaling Start of Rec... by mixmastamyk on Wednesday April 29, 2020 @04:36PM (#23023951)

> when money printer goes brrr then prices of financial assets tend to go up

It takes a while to kick in, though while the numbers go up, the values don't.

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