no where did you post it
Watch the interview with Tony Deden I posted, and then decide for yourself.Quote from: ExGingi on May 27, 2020, 09:13:25 PMWatch this: https://youtu.be/a4_U6bS-cU4It's long, but worth the time spent.Not sure if it will remain available for free watching for very long. It's from a paid subscription channel.
Watch this: https://youtu.be/a4_U6bS-cU4It's long, but worth the time spent.Not sure if it will remain available for free watching for very long. It's from a paid subscription channel.
Time to jump on PFE?
Why?
And then you have this:https://twitter.com/SquawkCNBC/status/1267784671842181121BE CAREFULL WHAT YOU BET ON.And "SPX valued on helium per share":https://twitter.com/EconguyRosie/status/1267800162593841154
The Fed can definitely help through bankruptcy by buying bonds.
Say WHAT?El Erian's point was that despite the fed buying Hertz and JCP bonds prior to the bankruptcy filing, they ended up filing for bankruptcy. Whatever financing they get once they are in bankruptcy is DIP (debtor in possession) financing.
I meant to prevent bankruptcy, if they want to. And they can help post bankruptcy by buying bonds of other companies who can buy the company.
Well, that's El Erian's point, they bought JCP and Hertz in order to help them, but they still filed for bankruptcy.
Not because they can't, because they didn't want to, or don't have the mandate to help individual businesses. Buying stocks in the first place is a stretch.
I don't think the Fed bought stocks in those two. They bought bonds, or IINM ETFs that hold those bonds. John Hussman has been crying bloody murder that this is illegal. They have no mandate to buy those kinds of assets.
Sorry, but why should the Fed try to prevent or help bankruptcy? We don't believe in too big to fail and we don't believe investors should have downside protection. It's irrelevant if they could (though they probably can) because they shouldn't.
Long.