LogFAQs > #954853716

I was mostly being facetious, but in some ways its already happening. I remember when the unemployment benefits first came out, people would actually make more money from unemployment than when they were working. That money was supposed to be put towards critical expenses like rent, food, etc. but it was so much free money that the excess went to things like the stock market (hence the bullish trend since mid-2020) and other non-essential goods.

This in turn has resulted in people simply not returning to work. Although the unemployment amounts have relaxed a bit, many people rather stay at home not working at all and making 70% of what they could if they were working.

All this to say that if enough people stop being able to afford certain things, the government/politicians will play hero to get votes. This then effects us as stock traders because, as you pointed out, there seems to be at least somewhat of a tie between the market and free money.