Stocks were selling off this morning, but given all of the recent backstops and the de facto “law(s)” in place that forbid stocks from going down, they “miraculously” closed in the green today. Of course the reason for the major turnaround from deep red to light green, was because the Federal Reserve issued a statement indicating that they will be purchasing corporate bonds on the secondary market. This is no surprise as this facility was announced nearly three months ago during the depths of the massive market sell-off. The total could potentially hit $250 billion for this facility alone. This pertains to the secondary corporate debt market. There is also a facility that pertains to the primary market, meaning the Fed may/will purchase corporate bonds directly from selected corporations – of course at subsidized lower rates. Lower rates than what a true functioning market would demand. So-long free market capitalism and hello banana republic.
The US national debt has officially topped $26 trillion – so congratulations America – you’re broke. And to add insult to injury, the White House is now presumably on board for another major spending bill that may cost up to $2-3 trillion. More trillions that we do not have. At this juncture in the current fiscal year, we’ve already spent $7 trillion – this is more than double the amount of total tax receipts! And there’s more spending on the way. Rome is burning and nobody seems to care because stocks keep going up. Markets are lost and unfortunately, so is any semblance of morality. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Depression #Bailouts #Debt #USA #Liberty #Revolution #Protests #Recession #Peace #EndTheFed