If you have this much time to keep up with ET postings, you're obviously a failure in trading, business and life in general. Congratulations...I guess. As for your sky-is-falling hysteria, the S&P 500 is down about 10.5% for the year...according to paranoid cat ladies like you, it should be trading at about 1600 right now. Go apply for handouts or something...you clearly don't have anything productive to do with your time.
The fact that the government is taking steps to stabilize, but here it is also necessary to be careful
so, so triggered. How much do you enjoy being wrong? The saddest part is you can't even see the reason the S&P has rebounded so hard is from the economic policies you first railed against & I predicted would happen (aka, the premise of this thread).
That's not the Fed buying equities directly, that's the Fed including certain equities as eligible collateral in the PDCF (Primary Dealers Credit Facility). In other words, it's telling primary dealers the following: If you are short in cash & hold equities, don't sell them to raise cash, just pledge them as collateral and get a 90 days loan from me. It's true that the collateral ownership gets transferred, effectively making the Fed owning the equities, but that happens only in case of default and if a primary dealer defaults, you shouldn't be worried if the Fed is buying equities or not, the least of concern actually.
https://www.cnbc.com/2020/04/29/pow...om-the-fed-for-the-recovery-to-be-robust.html Powell says the economy will likely need more support from the Fed for the recovery to be ‘robust’ Federal Reserve chairman Jerome Powell said there is a need for more stimulus for a robust economic recovery from the coronavirus crisis. “It may well be the case that the economy will need more support from all of us if the recovery is to be a robust one,” Powell said. “Will there be a need to do more though? I think the answer to that would be yes.” The Fed has taken unprecedented actions to provide support, including cutting its benchmark interest rate to near zero and launching programs that would total up to $2.3 trillion for households and businesses in need. “We have a number of dimensions on which we can still provide support to the economy as you know our credit policies are not subject to specific dollar limit,” Powell said. “They can be expanded as needed and we can do new ones, so we can continue to be part of the answer.” “We can do what we can do, and we will do it to the absolute limit of those powers,” Powell added.
https://www.bloomberg.com/news/arti...d-says-it-will-begin-buying-etfs-in-early-may New York Fed Says It Will Begin Buying ETFs in ‘Early May’ The U.S. central bank expects to begin purchasing shares of eligible exchange-traded funds as part of its emergency lending programs in early May, according to the Federal Reserve Bank of New York. Lending through the Fed’s so-called secondary market corporate credit facility and primary market corporate credit facility via purchases of corporate bonds will begin soon thereafter, the New York Fed announced Monday on its website. “Additional details on timing will be made available as those dates approach,” it said. BlackRock's HYG posts record month of inflows The credit facilities are backed by the more than $2 trillion economic relief package passed by Congress in March, to help shield the U.S. economy from the harm of the coronavirus pandemic. Businesses across the nation have shuttered to limit contagion and more than 30 million people have claimed unemployment benefits in the last six weeks. Fed officials first announced the creation of the facilities on March 23. Though they’ve not yet been launched, the announcement has had an important stabilizing effect in financial markets. “Many companies that would’ve had to come to the Fed have now been able to finance themselves privately since we announced the initial term sheet on these facilities,” Fed Chair Jerome Powell said during an April 29 press conference. “The ultimate demand for the facilities is quite difficult to predict because there is this ‘announcement effect’ that really gets the market functioning again. Of course, we have to follow through, though. And we will follow through to validate that announcement effect.” Investors have piled into bond ETFs in anticipation of the Fed’s purchases. BlackRock’s $20 billion iShares iBoxx High Yield Corporate Bond ETF, the largest junk-debt ETF, attracted a record monthly inflow of $3.7 billion in April. Meanwhile, the $46 billion iShares iBoxx $ Investment Grade Corporate Bond ETF has rallied roughly 12.5% since the Fed’s initial announcement in March.
U.S. Treasury To Borrow $3 Trillion In 3 Months To Pay For Pandemic https://www.npr.org/2020/05/04/850261945/u-s-treasury-to-borrow-3-trillion-in-3-months-to-pay-for-pandemic Stick future generations with the tab while Chumpie has his name put on all the borrowed money checks.
https://www.marketwatch.com/story/f...ing-corporate-bond-etfs-on-tuesday-2020-05-11 Fed says it will start buying corporate-bond ETFs on Tuesday The Federal Reserve's new lending facility will begin purchasing corporate bond exchange-traded funds on Tuesday, the New York Fed announced Monday evening. The Fed said most of the purchases would be in exchange-traded funds with exposure to U.S. investment-grade corporate bonds, but some of the purchases will be of ETFs whose primary exposure is to U.S. high-yield corporate bonds. The Fed said it will soon start purchasing debt issued by companies directly. Analysts said the Fed's announcement of the lending program in early April was enough to arrest turmoil in corporate bond trading and has allowed businesses like Boeing to issue debt.