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The $600 billion Nothingburger

By Misc follow Misc   2020 Jun 21, 12:18pm 446 views   8 comments   watch   nsfw   quote   share    

So there was supposed to be some stimulus for America's small and medium sized businesses. The Payroll Protection Program was a forgivable (I'm sure everyone who took it has had the loan forgiven) loan program that was basically for the rich and well connected. The Fed buying up trillions of debt was a bailout for America's large businesses. Then there was the Main Street Lending Program. It was supposed to help America's small and mid-sized businesses (you know, those that don't have any political pull). There was supposed to be $600 billion in lending through this program. Instead the Treasury Department and the Federal Reserve designed a program that was not supported by the banks through which it was supposed to be funded. The loan terms were pretty strict as well. So...no a big Nothingburger for America's non-politically connected businesses.

I expect these businesses to start failing left and right.

Blame the Fed, the banks and the Treasury Department. Since we know who is to blame, what do we do about them?
1   Tenpoundbass   ignore (15)   2020 Jun 21, 12:25pm     ↓ dislike (0)   quote   flag      

Yup so Trump has taken Bush's and Obama's economic tricks, that they were lauded as saving the economy when they did it. Even though the rebound was nothing short of a depression and erased a whole generation of self sufficient young adults for a decade. Trump used it to put the Global Cabal's planned economic demolition on pause.

Which means, all of those fucksticks in the EU, the Leftist Commie Latin American countries, and the Asian Commie Countries, are all going to be fucked when we rebound like nothing happened. Bye Falicity!

They've got nothing to limit their exposure, they are suffering every minute the global shamdemic lingers.

We're entertaining CNN watchers with Commie Zombie live action flicks, aka FAKE NEWS>
2   Misc   ignore (0)   2020 Jun 22, 5:17am     ↓ dislike (0)   quote   flag      

I have an idea. If they don't support those businesses, let's bring back "Mark to Market".
3   Al_Sharpton_for_President   ignore (6)   2020 Jun 22, 6:43am     ↓ dislike (0)   quote   flag      

I believe there is a difference in how these are done. The Fed creates money out of thin air to buy things directly, or via special purpose vehicles. The Treasury has to issue debt. And so when the US Treasury funds things through borrowing, this adds to the national debt. But when the Fed does it through keystrokes, it does not.
4   Onvacation   ignore (5)   2020 Jun 22, 10:54am     ↓ dislike (0)   quote   flag      

Al_Sharpton_for_President says
I believe there is a difference in how these are done. The Fed creates money out of thin air to buy things directly, or via special purpose vehicles. The Treasury has to issue debt. And so when the US Treasury funds things through borrowing, this adds to the national debt. But when the Fed does it through keystrokes, it does not.

So the logical conclusion of having a private bank control a nations currency is that the banks eventually own everything and the government (people) owe everything.

A system that creates money out of thin air and then expects all of that money to be returned PLUS INTEREST, is obviously a Ponzi scheme. When the music stops the banks end up with real assets and the people end up with paper promises.
5   HunterTits   ignore (4)   2020 Jun 22, 12:07pm     ↓ dislike (0)   quote   flag      

Misc says
The Payroll Protection Program was a forgivable (I'm sure everyone who took it has had the loan forgiven) loan program that was basically for the rich and well connected


Really? All those employees that were able to stay on the payroll under PPP are 'the rich and well connected'?

Al_Sharpton_for_President says
The Treasury has to issue debt. And so when the US Treasury funds things through borrowing, this adds to the national debt. But when the Fed does it through keystrokes, it does not.


The Fed has to have debt/assets backing whatever money it creates. US Treasuries are the preferred one, followed by bank reserves/collateral. So for every dollar the Fed creates, it backs it by debt that was created by someone else.
6   Misc   ignore (0)   2020 Jul 4, 3:30am     ↓ dislike (0)   quote   flag      

Still not a single loan through the Main Street Lending Program. I hope the economists at the Treasury weren't counting on this $600 billion stimulus.
7   Al_Sharpton_for_President   ignore (6)   2020 Jul 4, 4:26am     ↓ dislike (0)   quote   flag      

TrumpingTits says
So for every dollar the Fed creates, it backs it by debt that was created by someone else.
So? Whether the Fed buys UST's or not, they will be issued to fund spending voted on by congress. Just because I buy stocks doesn't mean I am a venture capitalist.
8   Al_Sharpton_for_President   ignore (6)   2020 Jul 4, 4:35am     ↓ dislike (0)   quote   flag      

Onvacation says
So the logical conclusion of having a private bank control a nations currency is that the banks eventually own everything and the government (people) owe everything.
No one is preventing you from owning assets. You can buy gold, RE, shares of companies, bonds. You can create an asset by starting a company.

The Fed does not issue UST's. It may buy them, just as it may buy other debt instruments, and even equities. It does so to support (manipulate) markets, and in the case of debt, to manipulate interest rates.

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