Bipartisan Support in Congress for Free money for all including governments!
The growing support for direct-deposited cash payments could turn into legislation in the next few days or weeks as lawmakers prepare a major bill to cushion individuals and businesses against the downturn.
Is the Corona crisis Giving the Fed Cover to Hold Corporate Debt?
Although this may provide short-term relief, it’s another example of the real disease that has infected global financial markets—central banks engaging in extraordinary monetary policy without any end game in place.
After all, we have seen that central banks have been unable to unwind their 2008 interventions in financial markets. In the US, minor rate hikes and a slow balance sheet roll-off sparked dangers that forced it to reverse course within a year. It has resulted in an overleveraged global economy, full of wildly mispriced debt. This has not only created significant bubbles throughout the financial system, but also an economy that is even more reliant on these volatile markets as conservative investments have been repressed in our low-interest environment.
So, although discount window operations are meant to be short-term
loans to financial institutions, we’ve seen the Fed's ability to make
the temporary permanent. The coronavirus has helped accelerate a global
crisis, but it is having the impact it has because the economy was
Treasury Secretary Steven Mnuchin made assurances there was “bipartisan support” for some economic relief. Still, it is not yet clear what sorts of demands Democrats would require along with any package that supports the airline or cruise industries.
She should be euthanized for the good of the country.