The stock market, economy and distribution of wealth
These events in different combinations make it virtually impossible for the equity markets to fail.
The Bretton Woods Agreement was an international monetary and financial framework established in July 1944 to regulate the international monetary system after World War II. It created a system of fixed exchange rates, where the U.S. dollar was pegged to gold and other currencies were pegged to the dollar, and led to the creation of the International Monetary Fund (IMF) and the World Bank.
On August 15, 1971, President Richard Nixon unilaterally ended the direct convertibility of the U.S. dollar to gold, terminating the Bretton Woods system. Known as the "Nixon Shock," this policy (Executive Order 11615) stopped foreign governments from exchanging dollars for U.S. gold reserves, shifting the world to a floating fiat currency system to combat inflation and foreign gold runs.
In response to the 2008 financial crisis, the US government enacted the Emergency Economic Stabilization Act of 2008, which created the Troubled Asset Relief Program (TARP). TARP was a $700 billion bailout package that aimed to stabilize the financial system, restart the economy, and prevent foreclosures. TARP funds were allocated to various programs, including
Quantitative easing (QE) is an unconventional monetary policy where central banks, such as the Federal Reserve, electronically create new money to purchase government bonds and other financial assets from the private sector. The primary purpose is to inject liquidity into the financial system, drive down long-term interest rates, and stimulate borrowing and economic activity when traditional rate-cutting methods are exhausted.
