The Fed can now buy stocks (indirectly)

Discussion in 'Economics' started by Pekelo, Mar 19, 2020.

  1. Pekelo

    Pekelo

    They created a nice backdoor:

     
    Amun Ra, RedDuke, Cuddles and 2 others like this.
  2. I would like to give shares in my company to the fed for a zero interest loan. I will keep creating shares every month. $3million worth. Thank you.
     
    dozu888 and Cuddles like this.
  3. Cuddles

    Cuddles

    fuuuu....is this effective immediately? Is it for already owned shares or can companies keep buying as many they want? Are the bears done after this?
     
  4. What a scam
     
  5. dozu888

    dozu888

    well nothing really changed.. Fed is a consortium of private banks... the member banks have always been buying stocks.
     
    qlai likes this.
  6. Sig

    Sig

    Um... Do I really need to point out that Starbucks isn't a primary dealer and therefore can't avail itself if the aptly named "Primary Dealer Credit Facility", nor could they realistically become one? Just to start to point out the idiocy of the referred to post.
     
  7. Amun Ra

    Amun Ra

    So every company can now buy back 100% of its stock in interest free money essentially.

    (Buy back 1%, use as collateral for interest free loan, buy another 1%, use as collateral for interest free loan, rinse and repeat and then go private)

    Maybe its fate that TSLA closed around the $420 range today.

    [​IMG]