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check and mate, the Fed has so many more tools, the discount window POMO and TOMO, the only problem is they are only pale cousins of the real thing (QE) or QaE, Future Qualitative Easing, will Trump order Yellen to buy stocks? Well Reagan sent Bush down to the NYSE in 87 with an open checkbook.
In non crisis mode it is enough to keep the liquidity they have already put in the market circulating until the leadership has made its way to an undisclosed location.
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Why do you need to buy stocks when you can keep zombie companies afloat, and keep their stock prices up (so executives can cash in), simply by making cheap loans available and then scooping up the bonds.
Part of the response to the 1929 crash was NEVER again to have the U.S. Government, or anyone else, being in the position to say Yes or No to bailing out the stock market directly. That’s what this hall of mirrors is all about.
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This is a discussion from Wolf Rickters blog–about the fact that the FED has added to its balance sheey-not drained 10 billion.
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The Mechanism itself has taken charge and is now increasing, automatically, what is on the Fed’s books. The Fed is not making any decisions, and cannot make any decisions. The Mechanism has taken over. The United States Government is now an automatic bankruptcy Court, making visible what has been known for a long time: the United States Government is bankrupt. Meaning that it is not governing the country anymore. Meaning look elsewhere.