Is the Fed decision to buy high-yield bonds an indirect attempt to bail out private equity funds? Do top PE people have access to people at Fed? https://finance.yahoo.com/news/jim-chanos-says-outraged-private-211017247.html (Bloomberg) -- Legendary short-seller Jim Chanos said he’s troubled that private equity is seeking financial aid from the federal government due to the economic impact of the coronavirus epidemic. “‘I’m a little bemused, puzzled and somewhat outraged, I guess, that private equity would be pushing to the front of the line to try to get taxpayer assistance,” he said in an interview Thursday on Bloomberg Television. The Federal Reserve’s move Thursday to throw a lifeline to small and mid-sized businesses and fund the purchases of some types of high-yield bonds has has been seen by some market participants as helping the private equity firms who owns some of these companies. Those firms earlier this week were dealt a setback in their attempt to gain access to billions of dollars of loans that the U.S. government is doling out to help businesses hit hard by the pandemic, Bloomberg reported.
Socialize the risk, privatize the profits. What is the motivation to run an actual company anymore? Lever to the tits and daddy government will come bail you out. The only person that suffers is the taxpayer. Why should you care? You'll just jump from a complete corporate meltdown with your golden parachute and the middle class will shoulder your burden for you. We don't live in a capitalist society. Anyone who believes so has not studied history. Corporate socialism is what America stands for anymore. We force people to suffer and allow corporations to enrich their board with buybacks and make shitty decisions only to be bailed out a decade later because they're "too big to fail". The $1200 paycheck was calculated based on a 40 hour week working minimum wage - the minimum wage that can't buy anything. "Socialism for the people" was never the socialism the elites intended. Instead it was corporate socialism. The kind that defines our way of life today. It's only "evil dirty communist socialism" when the people need help. When the corporations need it the coffers pour money into them so they can continue the same decade after decade fleecing of our country. At least Bernie had one thing right - American "capitalism" is broken. End corporate socialism. There is no other way. Absolutely no one on either side of the aisle wants this to change. Remember this when some poster on ET says "we need to bail these companies out". It's corporate socialism. Let's not call it a "bailout". Let's stop letting the corporations manipulate language to make it seem good only when it works for them.
Yup right, but only if you're big enough, e.g the reason why Warren plays only with the 3 largest banks.(?) The domino effect wouldn't work that well, with some $800M cap, southern east bank, so no bailouts for little ones like that. Wouldn't that be a - right thing to do , but at the wrong time ? This idea from Dalio, of - Dominating world power vs rising world power. Any dramatic change like that, right now, would put the dominance of US even more on the line. It looks to me, that for this capitalistic system, such changes are necessary and eventually inevitable, be it by legal choices of government or by some sort of revolt (of which Dalio spoke about, tho hardly imaginable in practice, yet, it's easy to imagine truck drivers in 10 years, blocking the roads, due A.I disruption and job loss) And someone, is trying to delay all of that, as long as possible, because changes like that, would have much higher cost right now, than it would have ~30 years from now on. Few reasons : The development of China will slow down even more. Not only that, but it would become a double edge-sword for em, since a developed society, usually breaks free at some point. The third world countries would develop further on, which would hurt CCP global influence plan, since it would get harder and harder to influence those nations. Maybe, just maybe, world would really get sick of IP thievery and would finally do something about it. The 2025 China Global - might be, not as much as the warning sign to others, that ,,we're coming'', but a vision for their nation, to increase the level of nationalism. Again, potentially because, CCP might be worried, about that ideology and faith in it, fading away. Thus conclusion : Current capitalism, as broken as it is, it works in US favor for now (ironically, not only for US, but for the rest of the world as well, with few exceptions), and the longer they can prolong it, the better. Personally, not a big supporter of a regime, where you might get taken away, for buying an iPhone.
they'll get it too, just like casinos: https://www.politico.com/news/2020/04/09/coronavirus-recovery-bill-fed-records-176371 A little-noticed provision of the Senate bill exempts board members from a wide swath of the federal open-meetings law. https://www.commondreams.org/news/2...imulus-law-allows-federal-reserve-hold-secret
Heh. Nice... Wonder if this temporary, might turn out to perma. So, if someone is doing poorly and government bailouts it in secret, in a strange way - sounds similar to CCP+Huawei scenario.