Push comes to shove, the only question about whether or not a bailout will happen (since there is no technical hurdle to issuing more money, just changing numbers in a database) is are the parties receiving a bailout sufficiently influential.
And I argue that people exposed to SP500, whether it be by holding it directly or facing the prospects of higher taxes because the government pension fund holding SP500 is not meeting its returns, are now sufficiently influential that it is a given that leaders won’t allow the broad market to be negative for more than a couple years.
2020 isn’t even the most recent one. Here’s a multi employer pension fund bailout from Mar 2021:
https://www.thoughtco.com/government-financial-bailout-histo...
Push comes to shove, the only question about whether or not a bailout will happen (since there is no technical hurdle to issuing more money, just changing numbers in a database) is are the parties receiving a bailout sufficiently influential.
And I argue that people exposed to SP500, whether it be by holding it directly or facing the prospects of higher taxes because the government pension fund holding SP500 is not meeting its returns, are now sufficiently influential that it is a given that leaders won’t allow the broad market to be negative for more than a couple years.
2020 isn’t even the most recent one. Here’s a multi employer pension fund bailout from Mar 2021:
https://www.nytimes.com/2021/03/07/business/dealbook/bailout...
As an aside, the irony of this specific bailout is the main beneficiary, Teamsters’ union, came out in support of Trump after Democrats saved them.