What To Do If The Stock Market Crashes?

Gorga, Carmine (2017): What To Do If The Stock Market Crashes? Published in: TalkMarkets , Vol. NA, No. Daily newsletter (14 March 2017): NA.

Abstract

If the Stock Market crashes, the Federal Reserve System (the Fed) ought to open the Discount Window to Main Street, by making 1. loans only for the creation of real wealth; 2. loans at cost; 3. loans to benefit as large a number of people as possible by issuing loans to individual entrepreneurs, cooperatives, corporations with ESOPs and/or CSOPs as well as to public agencies with taxing power to fund infrastructure projects.

• Item Type: MPRA Paper
• Language: English
• Keywords: D73, D78, E02, E32, E44, E52, E58, F53, G01, G18, G28, H12
• Subjects: D - Microeconomics > D7 - Analysis of Collective Decision-Making > D73 - Bureaucracy ; Administrative Processes in Public Organizations ; Corruption; D - Microeconomics > D7 - Analysis of Collective Decision-Making > D78 - Positive Analysis of Policy Formulation and Implementation; E - Macroeconomics and Monetary Economics > E0 - General > E02 - Institutions and the Macroeconomy; E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E32 - Business Fluctuations ; Cycles; E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E44 - Financial Markets and the Macroeconomy; E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E52 - Monetary Policy; E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E58 - Central Banks and Their Policies; F - International Economics > F5 - International Relations, National Security, and International Political Economy > F53 - International Agreements and Observance ; International Organizations; G - Financial Economics > G0 - General > G01 - Financial Crises; G - Financial Economics > G1 - General Financial Markets > G18 - Government Policy and Regulation; G - Financial Economics > G2 - Financial Institutions and Services > G28 - Government Policy and Regulation; H - Public Economics > H1 - Structure and Scope of Government > H12 - Crisis Management

References

Durr, J. 2016. Personal communication from Jean Durr, Public Affairs Office, Board of Governors of the Federal Reserve System, September 14.

Gorga, C. 2015. “Economics of Morality: Economics of Moses, Economics of Jesus,” Mother Pelican, A Journal of Solidarity and Sustainability, April.

Gorga, C. 2016. “Two Proposals in the Form of Two Petitions Designed To Stabilize the Monetary System.” Gloucester, MA: The Somist Institute.

Gorga, C. 2017a. “It Is The Economics, O America,” TalkMarkets, March 1.

Gorga, C. 2017b. “Concordian Economics: Beyond Micro and Macroeconomics.” MPRA Paper No. 77498.

Gorga, C. 2017c. “Concordian Economics: An Overall View,” Econintersect, January 2.

Gorga, C. 2017d. “Three Trillion Worth Of Zeros,” TalkMarkets, March 2.

Smith, A. 1776. An Inquiry into the Nature and Causes of the Wealth of Nations. London: Methuen & Co. Ltd.