Nominally, the market went higher...
but in real terms (priced in gold, soybeans, whatever) the markets have still collapsed since then
but in real terms (priced in gold, soybeans, whatever) the markets have still collapsed since then
Quote from achilles28:
911 was a buying opportunity because Greenspan dropped rates close to 0%, shortly thereafter.
The economy wasn't saturated with dollars or debt at that point, which is why a bull market resulted.
Rates are now at 0% and the market is 40% below its all time highs.
If Banks were suddenly cleared of their bad assets or derivatives reigned in, then perhaps 0% rates might work.
But as the situation stands today, if another 911 happened, the FED would have no ammo to shoot. So yes, it the economy would tank.
