[sandoooo]

The feds printed trillions of dollars. Much of it ended up on the stock market, especially since there is a dearth of other viable investments and the interest rate is low. Also the developing world is suffering even worse downturns and investors there are moving their money to relatively safer economies. Also some gun-jumping with Gilead's study. And a big short-squeeze since the recession is postponed.

I still think a recession is coming. It's just a matter of time now that the lockdowns are getting lifted without any real control over covid. There'll be a rise in new cases, slightly more stringent measures will come and go, other countries with proper recoveries will keep the US travel bans in place, etc. The market can't defy gravity forever.

It can, of course, defy gravity for long enough to lose you your shirt.

[chrisseaton]

> The feds printed trillions of dollars.

You're repeating a debunked myth https://www.stlouisfed.org/open-vault/2017/november/does-fed...

[s1artibartfast]

Your link supports the claim instead of debunking it. Off course they don’t physically print cash, but they increase the account balances.

The Fed adds to (or subtracts from) the amount of money in the economy by buying (or selling) U.S. Treasury securities and other financial instruments. This is referred to as “open market operations,” since these transactions take place in the open market. (The Fed isn’t allowed to buy securities directly from the U.S. Treasury.)

The Fed pays for those securities by crediting funds to the reserves that banks are required to hold, either cash in their vaults or deposits at a Reserve bank.

“So, in that sense, we can think of ‘printing money’ as adding reserves to the banking system,” said David Wheelock, vice president and deputy director of research.

[chrisseaton]

> Your link supports the claim instead of debunking it.

The claim was that they "printed" money. They didn't!

[jnwatson]

It is a euphemism.

[imtringued]

Yes, but a euphemism for what? Increase money supply without increasing the balance sheet of the Fed? Increase money supply by increasing the balance sheet of the Fed. These two might sound similar but they are worlds apart. One of them matches the physical process of printing money and the other one doesn't. Yet somehow in this HN submission "printing money" suddenly became a euphemism for both at the same time and the authors of the comments using the euphemism simply change the meaning to something convenient after the fact.

[sandoooo]

The article doesn't say what you think it says.

>One of the most common questions about the Federal Reserve is this: Does the Fed print money?

>There are really two ways to address this question. In terms of the actual, physical printing, no, the Fed doesn’t actually print or produce money in any form. Coins come from the U.S. Mint, and paper currency comes from the U.S. Treasury’s Bureau of Engraving and Printing. The Fed distributes currency after it’s printed.

>However, what many questioners might really be asking is whether the Fed has the ability to control how much money is in our economy. That’s a different story.

>The Fed adds to (or subtracts from) the amount of money in the economy by buying (or selling) U.S. Treasury securities and other financial instruments. This is referred to as “open market operations,” since these transactions take place in the open market. (The Fed isn’t allowed to buy securities directly from the U.S. Treasury.)

>The Fed pays for those securities by crediting funds to the reserves that banks are required to hold, either cash in their vaults or deposits at a Reserve bank.

>“So, in that sense, we can think of ‘printing money’ as adding reserves to the banking system,” said David Wheelock, vice president and deputy director of research.

[ssalazar]

I dont think anyone's arguing that the Fed is literally printing paper money, which is the myth debunked in that article.