HUGE STORY not getting much press. First time in USA history, the USA gov't controls stock prices.

[Demovictory9]

Link to tweet

HUGE STORY not getting much press. First time in USA history, the USA gov't controls stock prices. The Fed and Mnuchin are buying $1,250,000,000,000 (yep Trillions) of corporate bonds resulting in spikes in the stock prices of those companies."

Link to tweet

[LakeVermilion]

1. Give him nothing...

Make no deal. The country may be lost already.

[SunSeeker]

2. K & R & Retweeted!

[whistler162]

3. Pkay here is am actual source story

not just some twit tweeting?

https://www.cnbc.com/2020/06/29/the-fed-is-buying-some-of-the-biggest-companies-bonds-raising-questions-over-why.html

"The Federal Reserve is continuing to buy corporate bonds, following up on a pledge it made in March.
Corporate America titans such as Microsoft, Apple and Home Depot have been among the beneficiaries.
Questions have been raised over “moral hazard” as the Fed buys debt from companies that don’t seem to need the central bank’s help."

Remember back in 2008/2009 the Federal government's bailout of the auto industry bought a stake in that in that industry until they purchased it back from the feds.

[Cha]

4. Rt!

[wishstar]

5. Stocks had been falling back down when Fed propped up market with this scheme

The recovery of the stock market was faltering despite the huge stimulus money provided earlier this year by Congress. All along the Fed and Mnuchin pulled out one trick after another each time there were drops in market until they ran out of tricks and came up with the corporate bond purchases to infuse massive amounts of money virtually interest-free with no strings attached to some of the largest companies, not just those like the airlines that were in trouble.

Big part of Repubs unwillingness for a 3rd stimulus is because the Fed has successfully kept market up with the huge corporate bailouts.
Other reason is that they want to force unemployed to be so desperate they have to take any job which will lower unemployment numbers to help keeper monster in WH.

[ck4829]

6. K&R

[ashredux]

7. The Piper will be Paid....

Economics 101......

THERE IS NO FREE LUNCH

[James48]

8. The Federal Reserve Bank is NOT the government

They are a quasi-private entity, that is not directly controlled by the government. Yes, it’s members are appointed by the President for 14 year terms, but they don’t take day to day direction from the executive branch.

Just saying-

[melm00se]

15. +1

[Nay]

23. Thank you. The Federal Reserve is owned by ten big private banks, not the govt. nt

[duforsure]

9. trumps using the treasury to make the markets look better for political gains

So he can brag and use it to claim how great his economy is, when in reality its not , and guess who pay for it, we will. When he loses he'll stop, use it as a weapon causing it to crash then to claim its from electing Biden and Democrats. trump will threaten the country and all Americans more until election day , then he'll get worse when he loses.

[SheltieLover]

10. Of course!

Disgusting pos.

[uponit7771]

12. +1, ... and if Biden wins America will get bent 4th quarter this year. At minimum the stock market

... will go nowhere, somethings wrong with the markets and all money folk know it.

[kentuck]

11. The Chair of the Fed did say there was no limit to how much money would be put into the market.

Yes, it has been happening.

It appears that much of the stimulus that was meant to save small businesses has been going to Wall Street to protect the stocks of big business.

And Trump gets to brag about the stock market.

[duforsure]

13. Trillions to be used for his political benefit

While nothing for the people starving them back to work ,, and he'll back lower wages, less benefits , less health care, and to weaken unions , then onto destroying Social Security , Medicare, and then to allow companies to drain and destroy pensions and their funds . We'll pay dearly for the trillions he's using for this, and it will be a lot more than we know now.

[usaf-vet]

14. Is this the same old story the TWO SANTA CLAUSE shuffle with a twist. What individuals are getting..

.... richer with the market manipulation using taxpayer $$$$ to bolster an otherwise failing economy? My guess would be the Trump insiders (grifters).

So when Biden wins he starts in a huge HOLE that Trump and his con men dug. The (Rs) will start screaming about the deficit.

This ruse is better known as the TWO SANTA CLAUSE THEORY.

When the republican are in charge the spend spend spend and raise the debt. Then when Democrats are in the WH the republicans whine about the deficit THEY increased.

See this posting for a complete explanation of this OLD republican ruse played over and over.
https://www.democraticunderground.com/?com=view_post&forum=1002&pid=13881187

[reACTIONary]

16. This is a good maneuver...

... the Fed is doing it's job. We don't want our economy to collapse, we don't want a panic, we don't want a death spiral.

[Jarqui]

17. I told my sister that I feel the NYSE is being converted into

a Trump casino - corrupt like his administration.
We know how his casinos end.

If Biden remains out front, they'll pull the plug on the bonds and tell voters it is Biden's fault.

[Chainfire]

18. That is the capitalism that the right loves to worship

[keithbvadu2]

19. Printing money?

[cbdo2007]

20. Their capitalism is really socialism for the rich.

[roamer65]

21. So far M1 money supply YoY is up 38 pct.

Inflation will become a problem soon.

[James48]

24. Maybe, but maybe not.

The inflation is going to be in the price of stocks, not the prices of goods.

The economy does need a small amount of inflation anyway- we used to get that triggered by minimum wage increases every year back in the 60’s, 70’s and 80’s.

Now we only get a minimum wage increase when Dems control both houses and the WH.

I hope that will be in January. We need to make a to-do list for the first 100 days, that includes some kind of a minimum wage boost, as well as other things.

[roamer65]

27. If they keep it up, it will start a currency crisis.

Then we will get a whole gob of inflation at once.

[bluestarone]

22. President Biden, and Kamala Harris

Will have an ALMOST IMPOSSIBLE task when they win in Nov.! putin and RUMP, (with the help of EVERY RETHUGLICON senators) will Have this great country on it's knees! We know the stock market crash coming will DESTROY us. (my thoughts here) Gonna take GREAT SKILL to save us!!

[dalton99a]

25. Kick

[Amishman]

26. Buying up bonds does not raise stock prices.

If the bonds are previously issued, their changing hands has no impact on the parent company.

If they are newly issued, it adds long term debt which hurts their balance sheet - which would be expected to hurt their stock price.

[Yavin4]

28. Hey, when the govt controls stock prices, isn't thaaaaaaat.....

big hairy, scary, SOCIALISM!!!!

Booga! Booga!

[ck4829]

29. Dun dun dunnnn!