Current Events > What would happen if the US government tried to corner the stock market?

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uwnim
03/07/20 7:38:44 AM
#1:


What sort of effect would that have on the economy?


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Serious Cat
03/07/20 7:46:11 AM
#2:


The economy would be the least of our worries if that happened.

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uwnim
03/07/20 8:04:03 AM
#3:


Could you explain what you mean?

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tennisdude818
03/07/20 8:09:19 AM
#4:


What do you mean? Like buy stocks? The Federal Reserve would be tasked with that when/if it happens. The value of stocks measured in dollars would rise dramatically, while the value of the dollar would fall hard.

The idea has been floated around before. The current bull market is 11 years old and the an entire generation of money managers have become addicted to central bank intervention to keep it going. A lot of people think a bear market is unacceptable and that the Feds job is to support the stock market.

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uwnim
03/07/20 9:05:59 AM
#5:


Buying so many in so many different companies that they would own either the majority or a very significant amount of all the traded stocks out there. It would go far beyond just buying enough to prop up the market and would likely terrify a lot of people if it was attempted.

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