InvestorsHub Logo
Boards
News
Market Data
Markets
Discover
Discover
AI Subscribe Login/Register account icon
S&P 500
5,630.56
(
0.62%
)
US TECH 100
19,034.80
(
0.56%
)
Dow Jones
41,449.61
(
0.86%
)
Brent Oil
71.46
(
-0.71%
)
Bitcoin
59,619.45
(
2.55%
)
Post# of 253112
Next 10
Reply Private New
Public Reply Private Reply New Post
Keep Last Read
Replies (1) Keep Next 10 Report Keyboard Shortcuts
Replies (1) Next 10 Prev Next

zipjet

Send PM Follow Ignore
Followers 36
Posts 2623
Boards Moderated 0
Alias Born 10/06/2003

zipjet

Re: poorgradstudent post# 124787

Monday, 08/08/2011 5:06:44 PM

Monday, August 08, 2011 5:06:44 PM

Post# of 253112
OT

Why should the Fed care to game the market??? How does that actually help the economy?



Consumer spending accounts for about 70% of GDP. The top 5% of consumers by income, account for 20% of consumption spending or 14% of GDP. This subset of consumers is market sensitive and will back down their spending when investments are in the trash. 14% of GDP is a big deal. If this group cuts back their spending by 1/3 it could lead to another ~3M people losing their jobs.

ij

It is astonishing what foolish things one can temporarily believe if one thinks too long alone ... where it is often impossible to bring one's ideas to a conclusive test either formal or experimental. J.M. Keynes

Public Reply Private Reply New Post
Keep Last Read
Replies (1) Keep Last Read Next 10 Report Keyboard Shortcuts
Replies (1) Next 10 Prev Next
Join InvestorsHub

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.

Sign Up