Tuesday, March 24, 2020

Elites Conspiring to Create A Permanent Underclass Who'll Work For Peanuts

unz |  This is the contempt these people have for you and me and everyone else who isn’t a part of their elitist gaggle of reprobates. Here’s a clip from another article at the WSJ that helps to show how the financial media is pushing this gigantic handout to corporate America:.
“The Federal Reserve, Treasury Department and banking regulators deserve congratulations for their bold, necessary actions to provide liquidity to the U.S. financial system amid the coronavirus crisis. But more remains to be done. We thus recommend: (1) immediate congressional action …. to authorize the Treasury to use the Exchange Stabilization Fund to guarantee prime money-market funds, (2) regulatory action to effect temporary reductions in bank capital and liquidity requirements… (NOTE–So now the banks don’t need to hold capital against their loans?) .. additional Fed lending to banks and nonbanks….(Note -by “nonbanks”, does the author mean underwater hedge funds?)…
We recommend that the Fed take further actions as lender of last resort. First, it should re-establish the Term Auction Facility, used in the 2008 crisis, allowing depository institutions to borrow against a broad range of collateral at an auction price (Note–They want to drop the requirement for good Triple A collateral.) … Second, it should consider further exercising its Section 13(3) authority to provide additional liquidity to nonbanks, potentially including purchases of corporate debt through a special-purpose vehicle” (“Do More to Avert a Liquidity Crisis”, Wall Street Journal )
This isn’t a bailout, it’s a joke, and there’s no way Congress should approve these measures, particularly the merging of the US Treasury with the cutthroat Fed. That’s a prescription for disaster! The Fed needs to be abolished not embraced as a state institution. It’s madness!

And look how the author wants to set up an special-purpose vehicle (SPV) so the accounting chicanery can be kept off the books which means the public won’t know how much money is being flushed down the toilet trying to resuscitate these insolvent corporations whose executives are still living high on the hog on the money they stole from credulous investors. This whole scam stinks to high heaven!

Meanwhile America’s working people will get a whopping $1,000 bucks to tide them over until the debts pile up to the rafters and they’re forced to rob the neighborhood 7-11 to feed the kids. How fair is that?

And don’t kid yourself: This isn’t a bailout, it’s the elitist’s political agenda aimed at creating a permanent underclass who’ll work for peanuts just to eek out a living.