From today’s Stool Pigeons Wire at Capitalstool.com
12 hours ago, jp6 said:The SPV is called the Secondary Market Corporate Credit Facility (SMCCF) It is funded by $75B from the Cares Act … taxpayers. Blackrock is doing all the trades. It was announced on March 22, and started today, a week shy of three months later.
As long as the Treasury is willing to use taxpayer money is this fashion, nothing stops them from buying equities.
if the Fed and the Treasury create another SPV to buy equities, and Biden wins, nothing is to stop the Biden Treasury from appointing AOC to vote the proxies and use this clout to demand/force the Green New Deal.
Once Trump is gone, There is going to be lot’s of money printing.
Blackrock is managing the fund. The trades will be executed, as usual, with Primary Dealers. The Fed put out a list of accepted counterparties, and at a quick glance, virtually all of them were Primary Dealers.
The direct outright purchases of individual corporates is a new wrinkle. Previously the Fed was only going to buy ETFs.
The size of these transactions is less than a rounding error relative to regular OMO.
While I think that a Green New Deal is a good idea in theory, and I greatly admire AOC, that bit you wrote about AOC having a proxy from the Treasury is loony tunes gibberish.
No one in modern history has come close to the spending of the current Regime. The last two D administrations reduced the deficit. In fact, Clinton ran a surplus. After the initial post GFC surge, Obama shrank the deficit. The D’s are the ones who are fiscally responsible. After the next round of pandemic relief, the deficit will shrink, but from what level. From $800 billion a month to 200-300 billion per month? We used to think a trillion a year $80B/mo. was crazy.
Dicsucs.
Join the fun at the Stool Pigeons Wire at Capitalstool.com
