I'm a secured transactions attorney (JD Northwestern) with a M.S. in applied economics (Boston College), take the following, or leave it, or go fuck yourselves:
March 23, the federal reserve announced a new stimulus package: federalreserve.gov
The fed has decided to open the the Primary Market Corporate Credit Facility (PMCCF) and the Federal Open Market Committee (FOMC) to purchase Treasury securities and agency mortgage-backed securities. For you retards, that means the “large employers” and “investment grade U.S. companies and U.S.-listed exchange-traded funds” can buyback their stock (which is currently cheap as fuck) and sell it to the fed in exchange for capital or interest free loans. In other words, the fed is allowing corporations to create meaningless share valuations for themselves (via buybacks) and actually get paid to do it. This, by itself, creates a dog shit value for the $USD, turning “money” into an even more nebulous concept than it already is. But what’s more important than that is this:
This move represents what is effectively the end of capitalism and/or Lockean economic liberalism in the United States. The most foundational, basic tenants of capitalism/liberalism demand the ABSOLUTE REQUIREMENT that these corporations die so as to foster replacement, efficient corporate redesign, and general progress of commerce. The most crucial virtue, value, or inherent effectiveness of Lockean liberalism/capitalism relies on the death of ineffective corporate/business models so as to be replaced by those more suited and able to compete in the free market.
The Fed’s decision yesterday is a flagrant divorce from the most foundational tenants of capitalism that demand the replacement of flawed and ineffective business model, formally creating a corporate welfare state; a corporatocracy. The United States just severed the last tethers it had to a capitalist economic model.
