How exactly does the FED’s money enter/effect the market?
In: Economics
Fed gives money to banks. Banks either invest it into a company or give out as a loan to companies. Those companies use it to keep themselves afloat until they can get back to creating a profit. This stops big layoffs and stuff from happening which in turn prevents a market collapse.
Of course, that’s how it’s supposed to work. But what really happens is the rich find a way to keep that money, and use it to fund politicians into passing rich friendly laws, furthering the income gap, and normal working class people pay for it.
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