Ok, might sound like a bit of a silly question. Although I’m genuinely curious as from where all this money is flowing into the stock market?
Is there some tracker or overview that traces the flow of cash from bonds, crypto, creation of debt, savings accounts, etc into the stock market.
At the time of COVID it kinda made some ‘sense’ as the printer sang his brrt brrt harmony, but now wazzup!?
Where is all this money coming from pumping the stock market?
byu/billenbloot ininvesting
Posted by billenbloot
18 Comments
Margin borrowing
Inflation
gen z finally not buying avocado toast!
There’s no “money pumping”.
It only takes 1 sale at +1% to raise a market by billions. Volume matters.
Money doesn’t have to move in order for prices to go up. Just the perception of value increases prices.
401k create programmatic buying which will pump every single payday
there’s an all time high over $7.7 trillion in cash money market funds that people are rotating slowly back into the market over time
People.
Debt, leverage, buybacks, retirement funds, AI. The market always finds fuel somehow.
I think a lot of money left crypto
> Is there some tracker or overview that traces the flow of cash from bonds, crypto, creation of debt, savings accounts, etc into the stock market.
No.
Fractional banking.
Say you deposit $100 in a bank. The bank by law keeps 5% in case someone wants to get their money back and then loans out $95.
The economy now has in it $195. Poof, money made from nothing.
That person then puts that $95 in a bank. That bank keeps 5% and loans out $90. Now you have magically put $285 into the economy.
That is how fractional banking works.
The unfortunate thing is during a recession/depression, this can go backwards and backwards fast. And money can disappear out of the economy. And when the supply of money and the demand for money get out of whack, you can see hyper inflation or deflation, both of which are bad.
Debt and stolen gold from the aztecs
more buying than selling
Probably backdoor QE.
There was a post someone made a week or so ago. Essentially that inflation is so high that the market has to keep up with the devaluation of the dollar.
Effectively QE
A combination of leverage and the software sector.