As I indicated, ZH was actually only quoting a Reuters article from a few days before. So probably not right wing misinformation but certainly not some ZH exclusive that couldn't be found anywhere else. It wasn't even original to them. About the only original content they generate is either laughably wrong or purposely misleading.
I'll give you an example that makes more sense. I recently received a 6 figure loan that can be forgiven under certain circumstances, otherwise I have to pay 1%. I can do whatever I want with that loan (pretend.) I wait for the stock market to dip and I go in with leverage. Rinse and repeat for everyone connected to the Fed. This is what is meant by Fed buying stocks. They are throwing money around to their buddies and their buddies can only buy so many Ferraris.
I just now looked up the ZH article. It was as I thought it would be-- 100% unreliable numbers, based according to ZH, on social media!!! But I was wrong however in that it is clear in the article they were only referring to Wuhan. And that makes the whole thing doubly questionable, because if those numbers were right, it would be very difficult for China to conceal that wide a discrepancy. Of course there is every reason to believe China may considerably under report the deaths in Wuhan. Our own U.S., federal government is doing everything it can to downplay deaths from Covid, why wouldn't China also do it?
You may have have exaggerated the level of corruption at the Fed by a few orders, however the point is well taken that without proper oversight of this program a good deal of the money dumped into businesses my wend its way to the stock market. This is why oversight is needed. I think that was the reason that the Fed wanted these business loans processed through the commercial banks. They would then be subject to the usual controls used by banks when making loans. In this case that may be inadequate. The principle behind this dumping of money into the economy is that it should compensate for the precipitous decline in money interchange velocity. To do that properly however requires tight controls on how the money is distributed in the economy. Much of it has to go very quickly to those who are temporarily out of work to replace the income they would otherwise have. The amount distributed to businesses shut down only has to support their financing costs, as being shut down they have no day to day operating costs. Obviously it is not easy to do this well. There is technically no limit to the amount of money the government can provide the economy. The Danger is that too large a residual will remain in the economy once the crisis is past. Then it is a matter requiring equal skill in withdrawing the excess to prevent excessive inflation. The fed and Treasury working together, as they by necessity always do, have the necessary know-how and most of the tools to do this. They are are missing the fiscal tools of course, and that, since it involves politics, opens a huge can of worms. The single most important component needed to extract the nation from this crisis with minimal harm is leadership coordinating and directing at the top of the Federal Level -- White House, HHS, and CDC -- we lack that. At the very top, where leadership is most critical, we unfortunately have a Jackass! We will, therefore, be somewhat lucky, I would say, to survive this without long lasting damage to our institutions and the economy, to say nothing of the deaths that have yet to materialize. I wish I could be more up-beat, but under the circumstances we are in trouble.
You missed my entire point. Yes, they will come after plebs like me. But I don't get billions in free $$$ from the Fed.
And you missed mine as well. It should be noted, however, that under no circumstances short of criminal intent, would the fed or treasury simply hand out money. There will always be a qualifying process, and even if the money is at zero interest, if the program is well administered a net profit to the borrower should be very difficult to obtain, as it's purpose it to prevent unsustainable loses. If you have a legitimate business , and you have a legitimate need for assistance to prevent an unsustainable loss due to the Covid Pandemic, you should be able to qualify for assistance. But it won't be a matter of asking for the money and they give it to you. There will be controls. The question is, will they be adequate to prevent abuse while not so onerous as to create a nightmare for businesses that will, without federal help, suffer unsustainable losses due to the Covid Pandemic?
How much mental gymnastics do you have to do to avoid seeing that Fed liquidity is going to the stonks
I am not gone to assume it is. As I understand how fed and treasury work. i am going to assume it isn't. And i would need hard facts, not social media nonsense, to indicate otherwise. When I see facts that counter my views, I will of course change my mind. I haven't seen those yet. What makes me a little suspicious is that the Trump administration has not been welcoming of Congress's efforts to implement oversight of these programs, according to Congressional sources.
You are wondering why there is a disconnect between the economy in recession and the market. I am wondering that as well. The market is irrational most of the time , we know that. We may not know the reason. Nothing is gained by inventing one.