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In Reply to: Fine. I meant the Congress/Politician/WH I lumped them all as a governing entity.... posted by kuma on May 12, 2020 at 14:04:41:
Businesses who borrow under the CARES act are prevented from stock buybacks until a year after they've repaid it.
Businesses who borrow from the Fed have no such restrictions. The Fed recently started a program to buy unlimited amounts of corporate debt at very low interest rates. I included some links in my reply to I51.
It strikes me as wasting air to keep a leaky balloon inflated. Most stocks were already over-valued even before the virus.
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Follow Ups
- That applies to the CARES act, not the Fed - Dave_K 05/12/2015:05:03 05/12/20 (2)
- That's right. FEDs are buying corporate bonds left and right... - kuma 20:11:59 05/12/20 (1)
- The Fed is propping up the market and that's about it - Dave_K 07:31:15 05/13/20 (0)