FED to purchase corporate bonds, muni debt

[Pauls' Revere]

https://www.msn.com/en-us/money/mark...?ocid=msedgdhp

But the Fed is about to embark on something it has never done before: Directly buying corporate bonds, directly buying debt from cities and states, and making “Main Street” loans to midsize firms. These are far more complex and politically sensitive moves than buying U.S. Treasury bonds, but Fed leaders argue they are necessary to keep plenty of credit flowing at a time when so many businesses, households and local governments desperately need loans.

“Slightly cheaper credit doesn’t make any difference if stores are closed,” said Ian Shepherdson of Pantheon Macroeconomics.

Another fear is that the Fed could trigger an ugly spell of high inflation like what the United States experienced in the 1970s after the central bank arguably kept interest rates too low.

“It does beg the question of how far Washington can go in issuing and monetizing debt before everyone pays a price in terms of higher interest rates, higher taxes and higher inflation,” said David Kelly, chief global strategist at JPMorgan Funds.

[Brian4Liberty]

Price fixing. It never works.

They refuse to allow a market in debt to function. If they did, interest rates on debt would go up, which would then increase buyers.

Instead, it’s like a fake auction. “No one will bid at a price you want? Not to worry, Uncle Sam will buy it from you at your price.”

[devil21]

Price fixing. It never works.

They refuse to allow a market in debt to function. If they did, interest rates on debt would go up, which would then increase buyers.

Instead, it’s like a fake auction. “No one will bid at a price you want? Not to worry, Uncle Sam will buy it from you at your price.”

By running these facilities, they're openly admitting that the corporate bond, municipal bond and commercial MBS issuers are such a huge credit risk that no one else will lend to them. That's the only way the Fed can legally buy all teh thingz under the FRA. Yet at the same time, those same facilities are required by 13(3) of the Federal Reserve Act to receive proof that the issuers are otherwise not insolvent or an untenable risk to taxpayers. Then, the same section says that the Fed may operate these facilities to PREVENT the debt issuer from going bankrupt/insolvent, which they presumably would if not for the Fed's lending facility.

[Brian4Liberty]

By running these facilities, they're openly admitting that the corporate bond, municipal bond and commercial MBS issuers are such a huge credit risk that no one else will lend to them. That's the only way the Fed can legally buy all teh thingz under the FRA. Yet at the same time, those same facilities are required by 13(3) of the Federal Reserve Act to receive proof that the issuers are otherwise not insolvent or an untenable risk to taxpayers. Then, the same section says that the Fed may operate these facilities to PREVENT the debt issuer from going bankrupt/insolvent, which they presumably would if not for the Fed's lending facility.

Another Fed-Bankster-Wall St-Establishment scam.

[oyarde]

Saw this coming 7 weeks ago . Look for lots of it .

[Slave Mentality]

I saw this coming too. I also see these thieves bailing out public pension funds.