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Ben Bernanke and Janet Yellen are urging the Fed to go beyond authority and buy corporate bonds
CNBC ^ | March 18, 2020 | Jeff Cox

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 Fed’s 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 ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: banking; economy; virus
One very concerning thing is the market depth in the Treasury market has disappeared.
1 posted on 03/18/2020 11:27:45 AM PDT by C19fan
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To: C19fan

This is a textbook case of fascism. Private industry basically functions as an arm of the government — and/or vice versa.


2 posted on 03/18/2020 11:36:40 AM PDT by Alberta's Child ("Oh, but it's hard to live by the rules; I never could and still never do.")
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To: C19fan

I used to suspect Ben was secretly buying stocks in 2009.


3 posted on 03/18/2020 11:46:27 AM PDT by aynrandfreak (Being a Democrat means never having to say you're sorry)
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To: C19fan

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.


4 posted on 03/18/2020 11:46:31 AM PDT by unclebankster (globalism is the last refuge of a scoundrel)
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To: C19fan

A bridge too far.


5 posted on 03/18/2020 11:51:08 AM PDT by gloryblaze
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To: C19fan
"Ben Bernanke and Janet Yellen"

Now there's a couple of names that fill me with confidence...Snicker...

6 posted on 03/18/2020 12:05:22 PM PDT by SuperLuminal (Where is Sam Adams now that we desperately need him)
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To: C19fan

The FED is partially responsible for creating the stock market bubble that just burst.


7 posted on 03/18/2020 12:14:49 PM PDT by donaldo
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To: aynrandfreak

There were rumors as far back as the 90s that the Fed was secretly buying S&P 500 futures to lift the market.


8 posted on 03/18/2020 12:24:41 PM PDT by M1903A1 ("We shed all that is good and virtuous for that which is shoddy and sleazy...and call it progress")
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To: donaldo

Yep...propping it up ever since 2008.


9 posted on 03/18/2020 12:28:56 PM PDT by M1903A1 ("We shed all that is good and virtuous for that which is shoddy and sleazy...and call it progress")
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To: donaldo

The FED helped drive down the market on 2018 to affect the elections. Maybe they’re at it again...


10 posted on 03/18/2020 12:53:50 PM PDT by OrioleFan (Republicans believe every day is July 4th, Democrats believe every day is April 15th.for corruptiion)
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To: C19fan

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.


11 posted on 03/18/2020 1:42:36 PM PDT by John S Mosby (Sic Semper Tyrannis)
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To: C19fan

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.


12 posted on 03/18/2020 2:07:07 PM PDT by GaltMeister (All that is necessary for the triumph of evil is that good men do nothing.)
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