News broke late this afternoon that the Fed would buy small business loans from banks. In other words, the treasury isn’t taking on debt for these bailouts, but instead making the Fed Brrrrrr with their printing presses and do the work for them. Also, late in the day, the mortgage services were pressing lawmakers to have the Fed fund them in order to service bond holders. See, people aren’t paying their mortgages, so instead of depending on the actual tenants to pay them — they want the Fed to give them the money. AND THEY WILL GET IT!
Why is this important? Because the treasury isn’t borrowing money to fund these facilities and instead using Fed funny money to do it — super inflationary. If this trend continues, the Fed will be the new defacto treasury, financing all of the governments projects with UNLIMITED printing press dollars. There has never been a more bullish case for gold.
The Dow lifted 1,640, Nasdaq more than 500. I closed out all of my shorts and went long with 95% of my account — caught upside in most of my intraday longs and will likely be selling them all very soon.
Stop complaining about how rigged everything is and blaming others for your fuckups. It is what it is — play the game and try to limit the losses while maximizing the gains. No one said this was an easy racket.
Surprisingly, this had zero effect on markets today.
BREAKING: British PM Johnson moved to ICU following coronavirus hospitalization. https://t.co/ogmYSSIM8z
— NBC News (@NBCNews) April 6, 2020