Economy is being kept alive by government debt and transfer payments.
“Economy is being kept alive by government debt and transfer payments.”
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If a breakdown in the stock market occurs a reverse wealth effect will kick in which could crush the economy. The Fed is undoubtedly aware of this and will do whatever it takes to prevent a meltdown. A whole new form of the “invisible hand” as it were. Not saying this is a desirable thing in a so-called free economy mind you.