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DrStool

Fed Swears to Preserve, Protect, and Defend Moral Hazard 3/26/20

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2 minutes ago, DrStool said:

30 times original QE. Think about that for a moment. Think about what that implies. 

Now, for a little perspective. 

 

That implies that they went finally TOTALY insane!

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14 minutes ago, fxfox said:

That implies that they went finally TOTALY insane!

i'd take it a step further...it doesn't imply ....in confirms...😁

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LEE'S FREE THINKING

Fed Gave Primary Dealers $110 Billion Outright Today, March 25

by Lee Adler •  • 0 Comments

The Fed bought $70 billion in Treasuries and $40 billion in MBS from Primary Dealers today. That’s a month’s worth of old QE in a day. They’ve been doing it every day this week and will do it again Thursday and Friday. 

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The Fed will be precluded from buying non investment grade corporate debt.  Ford just was downgraded below that yesterday.  At any rate the power to cut off corporations from Fed largess is a great power.  I would think anyone buying stock should at a minimum make sure that it's debt rating is investment grade. The gold standard will be corporations that have had their debt bought by the Fed. Once that happens they will not be allowed to go bankrupt. More credit will always be on the way. 

Some call this moral hazard. It's actually the way things were always pointing. 

I truly  think this moment, monetizing corporate debt, and probably soon enough equity, is a monetary revolution. The trick will be preventing revolution down below.

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When the central bank of the state owns everything, what the hell is that? 

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2 minutes ago, DrStool said:

When the central bank of the state owns everything, what the hell is that? 

Japan.

or 21st century slavery

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In the following hour you will see live in front of your eyes the most shameless act in contemporary market history

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8 minutes ago, fxfox said:

In the following hour you will see live in front of your eyes the most shameless act in contemporary market history

Hard to beat the Hour Of Shower this morning.......

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3 minutes ago, MisFit Kid said:

Hard to beat the Hour Of Shower this morning.......

„Hour of Shower“, priceless! 😂😂😂

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43 minutes ago, DrStool said:

When the central bank of the state owns everything, what the hell is that? 

It isn't ownership. It's the supplier of capital  to the owners via buying their debt. . With an interest, really an imperative, to make sure they do not default on that debt. Thus all layers of government will support the favored  companies and if needs be the Fed will continue to give them more credit.

I came in here 18 years ago saying that somehow, and I didn't know how and back then I didn't really know how the banking system created money, I mean really know the mechanisms, that eventually money would be based upon corporations.  So here we are.

Some will say it's the end of capitalism but I look at it as the perfection of it. 

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