OT: Coronavirus (COVID-19): Part V

[Machinehead]

They changed the rules so they could manipulate like 10 years worth into a couple months.

However the "rules" that have been changed have been allowed, or nor forbid by congress.

It's not a partisan issue, both sides have their hands in the cookie jar.

Yes, but the sad thing is, they didn't really change the rules.

These are the rules.

 

[Off Sides]

Yes, but the sad thing is, they didn't really change the rules.

These are the rules.

They do change them, or at least not stop them from bending them.

First, the Federal Reserve Act does not allow the Fed to buy corporate bonds, but they seem to have gotten around the rules with an equity injection from the Treasury, their emergency powers under Section 13-3 and lending funds to a special purchase vehicle that will implement the purchases. Very creative.

Second, in terms of the details, there's a provision that the Fed will allow companies to avoid paying any interest on the bonds for six months (subject to restrictions on dividends and buybacks) and has reserved the right to extend this provision as warranted. It's not quite as powerful as a cash injection, but those terms are about as good as it gets from a central bank.

https://seekingalpha.com/article/4334245-fed-goes-past-all-in-congress-drags-feet

 

[sbjnyc]

The Federal Reserve is blatantly manipulating the market in the name of putting the “economy back onto the road to recovery”. Printing up billions a week and dumping it into the market.

Meanwhile companies are declaring bankruptcy or laying off massive amounts of staff left and right. I’m sure the millions of Americans that have been laid off recently really care that the stock market is holding up, while they’re looking for a job

And clearly none of the people coming up with the monetary policies have thought about the downsides of infinite leveraging.

Or they just don’t give a f*** because they’ll be dead when the chickens come home to roost

Or they could just let all the pension funds and 401(k) plans fail. I'm sure you think that would be awesome. Most americans have some form of stock ownership whether directly via a brokerage account or indirectly through retirement plans and college savings.

The Federal Reserve blatantly manipulates the market and dumps billions into executive pockets 365 days a year.

They spend trillions on healthcare alone, most of which goes into the coffers of insurance companies.

This post is nonsense. The role of the federal reserve is manipulation of markets. But the federal reserve doesn't spend anything on health insurance except about $40 million on employee benefits. And the vast majority of health insurance premiums winds up in the healthcare system.

 

[Machinehead]

This post is nonsense. The role of the federal reserve is manipulation of markets. But the federal reserve doesn't spend anything on health insurance except about $40 million on employee benefits. And the vast majority of health insurance premiums winds up in the healthcare system.

I don't know what you're talking about. The federal government spends 15-18% of our GDP on healthcare.

Our taxes pay for large parts of it but not nearly all of it.

 

[will1066]

I don't know what you're talking about. The federal government spends 15-18% of our GDP on healthcare.

Our taxes pay for large parts of it but not nearly all of it.

Liberty biberty.

 

[Machinehead]

Liberty biberty.

You would think, right?

But you'd be surprised how little, when all is said and done, comes out of the hide of insurance companies. They're a ponzi scheme.

But let's not get me started again.

 

[will1066]

https://nypost.com/2020/04/29/what-...-outbreak-can-teach-us-about-the-coronavirus/

 

[Off Sides]

https://nypost.com/2020/04/29/what-...-outbreak-can-teach-us-about-the-coronavirus/

Episode 119: Circus Man

 

[LokiDog]

Well amidst all the doldrums of quarantine I managed to turn this:

Into this:

 

[bl02]

Well amidst all the doldrums of quarantine I managed to turn this:

Into this:

Awesome man! Congrats!!!

 

[sbjnyc]

I don't know what you're talking about. The federal government spends 15-18% of our GDP on healthcare.

Our taxes pay for large parts of it but not nearly all of it.

The federal reserve is not part of the federal government.

 

[NYSPORTS]

Are you suggesting it is a crime to short stock or buy put options?
.

I suggest you read beyond one post.

 

[sbjnyc]

I suggest you read beyond one post.

Which posts should I have read besides the one I responded to?

 

[NYSPORTS]

Which posts should I have read besides the one I responded to?

The paragraph speaks for itself. It can’t be that confusing.

 

[NYSPORTS]

https://nypost.com/2020/04/29/what-...-outbreak-can-teach-us-about-the-coronavirus/

could say those episodes were based on the Spanish Flu too. Amazing how that pandemic and this one is so close to 100 years apart (99)

 

[sbjnyc]

The paragraph speaks for itself. It can’t be that confusing.

So I guess Im confused by what you meant by criminals who bet against the market.

 

[NYSPORTS]

So I guess Im confused by what you meant by criminals who bet against the market.

I made the same point as you regarding the market. The stimulus saved everybody’s 401K. Without the stimulus everybody would lose and if this was all about the rich, yes, they would have preferred no stimulus and bought in after it crashed. But yeah, one prick (likely others) named Bill Ackman is a criminal.

 

[Machinehead]

The federal reserve is not part of the federal government.

I'm sure they operate completely independently.

 

[sbjnyc]

I'm sure they operate completely independently.

The president cannot order the federal reserve to change interest rates and the federal reserve certainly has nothing to do with insurance. I have no idea where you came up with that.

 

[sbjnyc]

I made the same point as you regarding the market. The stimulus saved everybody’s 401K. Without the stimulus everybody would lose and if this was all about the rich, yes, they would have preferred no stimulus and bought in after it crashed. But yeah, one prick (likely others) named Bill Ackman is a criminal.

I guess I took it a little personally considerIng I bet against the market as well. Unfortunately I passed on my plan to buy vix options in January.

 

[Machinehead]

The president cannot order the federal reserve to change interest rates and the federal reserve certainly has nothing to do with insurance. I have no idea where you came up with that.

No, he just appoints the guy who runs it.

I'm talking about the federal government and you keep bringing up the federal reserve as if there's no affiliation.

 

[sbjnyc]

No, he just appoints the guy who runs it.

I'm talking about the federal government and you keep bringing up the federal reserve as if there's no affiliation.

The federal reserve, which is what we were discussing, doesnt work the way you think it does. The president cannot fire the chair. The chair is kind of like the chief Justice minus the lifetime appointment. A single person does not make the decisions.

 

[Machinehead]

The federal reserve, which is what we were discussing, doesnt work the way you think it does. The president cannot fire the chair. The chair is kind of like the chief Justice minus the lifetime appointment. A single person does not make the decisions.

Whether it's specifically the reserve or not wasn't relevant to my point.

 

[sbjnyc]

Whether it's specifically the reserve or not wasn't relevant to my point.

The Federal Reserve blatantly manipulates the market and dumps billions into executive pockets 365 days a year.

They spend trillions on healthcare alone, most of which goes into the coffers of insurance companies.

So what was your point then?

 

[will1066]

Well amidst all the doldrums of quarantine I managed to turn this:

Into this:

Congratulations!