Fed’s assets spike to high heaven to bail out the imploded Everything Bubble it had worked so hard to inflate over the past decade.
In good Financial Crisis manner, stuff blows up despite the Fed’s effort to stem the chaos. Now hoping for taxpayer bailouts.
Even after the bottom is perceived to be in, “buybacks may be slow to come back” as companies struggle for cash amid potential government restrictions on buybacks and their dismal public image: S&P Dow Jones Indices.
S&P made up for its tardiness by downgrading the CMBS in one fell swoop by 9 notches from AAA to BBB-, just one notch above junk.
Indirectly via its Special Purpose Vehicles and its Primary Dealers, the Fed can buy even old bicycles, as long as taxpayers take the losses.
This is the moment when yield-chasing turns into a massacre.
Kissing share buybacks and dividends goodbye.
Drags out bailout creature from Financial Crisis 1: “Loans” to Primary Dealers.
Frazzled by the sudden appearance of Financial Crisis 2, the Fed scurries in every bailout direction.
The ECB promises to “monitor markets closely.” Then it came out with a new bond buying binge.