Meet The New Boss – At The Fed

by | Mar 27, 2020

Jim Bianco at Bloomberg

1000x 1The Fed will finance a special purpose vehicle (SPV) for each acronym to conduct these operations. The Treasury, using the Exchange Stabilization Fund, will make an equity investment in each SPV and be in a “first loss” position. What does this mean? In essence, the Treasury, not the Fed, is buying all these securities and backstopping of loans; the Fed is acting as banker and providing financing. The Fed hired BlackRock Inc. to purchase these securities and handle the administration of the SPVs on behalf of the owner, the Treasury.

In other words, the federal government is nationalizing large swaths of the financial markets. The Fed is providing the money to do it. BlackRock will be doing the trades.

This scheme essentially merges the Fed and Treasury into one organization. So, meet your new Fed chairman, Donald J. Trump.”

 

Related Articles

Related

How to Panic the Public

How to Panic the Public

Disseminate worst-case scenarios, taking care to ignore the dubious assumptions that go into modeling while vilifying anyone, no matter how well-qualified, who refuses to ignore them. Emphasize the (alleged) benefits of a draconian government response, taking care to...

read more
Book Foolssm

Fool’s Errand: Time to End the War in Afghanistan

by Scott Horton

Book Foolssm

The Great Ron Paul

by Scott Horton

Book Foolssm

No Quarter: The Ravings of William Norman Grigg

by Will Grigg

Book Foolssm

What Social Animals Owe to Each Other

by Sheldon Richman

Book Foolssm

Coming to Palestine

by Sheldon Richman

Pin It on Pinterest

Share This