The Fed welcomes being a bad bank. “We’re making all this up as we go along.” @BrettArends & Jim McTague @Mctaguej

Apr 11, 03:40 AM
Image:   A political cartoon depicting Andrew Jackson battling the many-headed monster of the Bank: a satire on Jackson's campaign to destroy the Bank of the United States and its support among state banks.

Jim McTague, novelist, formerly of Barrons; and Brett Arends, MarketWatch; in re:  Larry Kudlow suggested four to eight weeks till reopening.

Or a National Pandemic Readjustment Period to end June 8. . . .  So far, no financial firm has failed, because the Fed is trying to save them by artificially inflating assets again: Buy bonds with no collateral—the Fed becomes a bad bank. Grant’s cartoon: little boy opens the door, finds a man saying, “Hello, I’m from the Fed and we're buying baseball cards.”

Today we don't have a bond mkt or a stock mkt the way we used to.  Today, our stock market is a fiction.   We’re making all this up as we go along.  Who’ll buy all the assets from the Fed? Will the US taxpayer end up eating the debt? [Yes. —ed.]. When long-term interest rates go up, I’ll believe we have markets again. Currently, rates are lower than they were even in the 1930s.