Skip to comments.Ben Bernanke and Janet Yellen are urging the Fed to go beyond authority and buy corporate bonds
Posted on 03/18/2020 11:27:44 AM PDT by C19fan
Former Federal Reserve chairs Ben Bernanke and Janet Yellen are recommending that the central bank continue trying to shore up the economy against the coronavirus threat, even suggesting that it go beyond the powers it now has.
In a Financial Times essay, the two say the Fed should look for more authority that would give it the power to purchase corporate bonds on top of the Treasurys and mortgage-backed securities it already plans to buy.
The Feds intervention could help restart that part of the corporate debt market, which is under significant stress, Bernanke and Yellen wrote. Such a program would have to be carefully calibrated to minimize the credit risk taken by the Fed while still providing needed liquidity to an essential market.
(Excerpt) Read more at cnbc.com ...
This is a textbook case of fascism. Private industry basically functions as an arm of the government and/or vice versa.
I used to suspect Ben was secretly buying stocks in 2009.
We’ve had a independent Treasury Department(on paper) since the Great Depression of 1837-1844, when Van Buren was President.
Trump and Mnuchin could cut the central bank out completely.That’s why they are talking about injecting cash into the economy.
A bridge too far.
Now there's a couple of names that fill me with confidence...Snicker...
The FED is partially responsible for creating the stock market bubble that just burst.
There were rumors as far back as the 90s that the Fed was secretly buying S&P 500 futures to lift the market.
Yep...propping it up ever since 2008.
The FED helped drive down the market on 2018 to affect the elections. Maybe they’re at it again...
The Federal Reserve is NOT chartered to the United States for private (tax subsidized) investment in Corporations. No freaking way... no matter who is in trouble in their little club.
TARP was one thing, this is rather another. Way outside of bounds.
Better— how about the Federal Reserve stop monkeying with crap that is not their responsiblity, like the continuing “algorithm” of worthless paper being pushed by their member traders.... pushed onto some schlub stuck with no chair when the music stops.
Case in point.
I would think they would STFU and let the incumbents in their former positions work without interferrence from the peanut gallery.
I don’t remember Volcker or Greenspan writing editorials on what Ben or Janet should or should not be doing.
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