01-31-2022, 10:24 PM
Could the federal government (US) invest in the stock market to increase liquidity?
<!-- SC_OFF --><div class="md"><p>I'm still pretty new to finance, but I was just thinking that since liquidity is important for the health of the stock market, the government may be able to intervene during a financial crisis to increase the liquidity of the market, right? I don't just mean like QE or propping up specific companies or something, but literally initiating trades to keep money moving around. Could some strategy like this reduce the impact of future crashes??????????????????????????????????????????????????????</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/anders1319"> /u/anders1319 </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/sh4ssx/could_the_federal_government_us_invest_in_the/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/sh4ssx/could_the_federal_government_us_invest_in_the/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p>I'm still pretty new to finance, but I was just thinking that since liquidity is important for the health of the stock market, the government may be able to intervene during a financial crisis to increase the liquidity of the market, right? I don't just mean like QE or propping up specific companies or something, but literally initiating trades to keep money moving around. Could some strategy like this reduce the impact of future crashes??????????????????????????????????????????????????????</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/anders1319"> /u/anders1319 </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/sh4ssx/could_the_federal_government_us_invest_in_the/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/sh4ssx/could_the_federal_government_us_invest_in_the/">[comments]</a></span>Kind Regards R