Long term effects of virus shutdown

[Detroitgator]

Yes that was the plan to spin Fannie and Freddie out of the government rule and on their own again, so to speak. But for years they have not been able to come to an agreement on how to do it. so now as you mentioned, the GOV owns so much and now they are going to own even more by having to back stop the mortgage lenders/servicers. And with the FED now buying Corp. debt, Muni debt, Junk debt, all the Gov. entities are just going to get bigger. Next up will be buying US common stocks. Our government has decreed that there is no risks in taking risks. If you lose we will be there, pick you up, give you back what you lost and then some.

Well, they're already buying US common stocks through third parties, and don't forget the at least 14 dollar swap accounts we've established with foreign CBs.... ;)

 

[Detroitgator]

Federal Reserve now officially bailing out cities and counties...

 

[BMF]

Warren Buffet just sold a sh*t ton of Delta stock....and today it goes up 10%. What gives?

 

[Detroitgator]

Warren Buffet just sold a sh*t ton of Delta stock....and today it goes up 10%. What gives?

The govt is buying... And owning...

 

[FireFoley]

@Detroitgator another dash for trash today. Perhaps it will be a trend. Look at all the stuff that up 10% or so today. Airlines, Carnival, Kohl's, L Brands, Gap, Oxy, Simon Property, etc. etc. I may or may not own some of these, but these have been the garbage for a long time. They are awesome trades if you can pinpoint the timing, but that is the difficult part. The 2 yr. seems tethered to about 20 basis points, but I see the 10 yr. had a big rally today and settled around 60 basis points from about 66 yesterday.

 

[Detroitgator]

@Detroitgator another dash for trash today. Perhaps it will be a trend. Look at all the stuff that up 10% or so today. Airlines, Carnival, Kohl's, L Brands, Gap, Oxy, Simon Property, etc. etc. I may or may not own some of these, but these have been the garbage for a long time. They are awesome trades if you can pinpoint the timing, but that is the difficult part. The 2 yr. seems tethered to about 20 basis points, but I see the 10 yr. had a big rally today and settled around 60 basis points from about 66 yesterday.

I wouldn't try to overthink things... as long as they can keep the 10 year propped up (and it sagged HARD today after being pushed up even more yesterday), and as long as the Fed keeps buying everything, it is all MARKET bullish, period, end of statement. It doesn't matter what you "know", it is reality.

The one big problem they still have is oil....

 

[FireFoley]

Federal Reserve now officially bailing out cities and counties...

Saw where the FED has relaxed the criteria for which cities (or should I say towns) munis they will take on. If you have a zip code you have a chance, regardless of population.

FED virtual meeting Wednesday and virtual Q&A. Just another chance to pour more gasoline on the fire. Well at least someone is using gasoline