America Convulses in Pain, Fed Bails Out the Wealthy

[marmar]

THE WOLF STREET REPORT: America Convulses in Pain, Fed Bails Out the Wealthy
by Wolf Richter • Jun 7, 2020 •

What’s so insidious about the Fed’s bailouts of investors in hedge funds, mortgage-REITS, stocks, bonds, leveraged loans, and other often risky assets? The destruction of capitalism (14 minutes):

[samsingh]

1. witness the bloated stock market when companies profits are way down

[at140]

4. Market is looking at economy 6-12 months ahead,

not current or next quarter. So it looks like market is predicting a V shaped recovery in economy.

[duforsure]

2. While trump and Mitch hold up getting direct checks to the people

trumps behind not wanting the American people to get anything else, unless they put a lot into the bill that'll help him. Just watch , he's saying one thing but doing another again by claiming something to the people but really is doing the opposite . He is very likely underwater with his finances again from losing so much business. Joe Biden would bail out the people not over and over again give the wealthy windfalls in taxes and tax breaks. trumps playing both sides but really is working for the wealthy not the people.

[at140]

5. Only thing Trump wants is low interest rates, even negative rates

because Trump corporation borrows heavily to construct high rises and golf resorts.

[Warpy]

3. The stock market is all Big Dummy has to brag about.

What we're about to see is the total collapse of the demand side. People simply weren't paid enough to cope with a 2 month hiatus in paychecks, and that laughably low check plus unemployment might have kept a roof over their heads, but that's all it did. They're going to be spending months playing catch up on car payments, restocking kitchen staple items, utilities, credit card payments and late fees, and every other thing people are saddled with---and that's if they still have jobs. Many people out there are not going to have jobs as small businesses simply go under because they weren't making enough to lose their customer base for any length of time.

If this video doesn't make you want to tar and feather every single fat cat in government, then you didn't watch it all. Yes, the stock market should have been allowed to correct. Yes, the high risk hedge funds should have gone under, that is SO overdue. Yes, the pain should have been spread and the bailout should have been to trigger the demand side instead of the bloated supply side.

Thanks for posting this, this is worse than what Reagan did to us.