A bond is an IOU that some entity (in this case a corporation) gives in exchange for cash. It's essentially a loan but instead of going to a lender they "sell" this bond on the open market to the lowest bidder to get a cheap loan with no fees or conditions. This loan concept breaks down when the bonds are being bought by the Fed with freshly printed and unlimited dollars. The Fed could never collect on the loan, making it a cash bailout.
This money can be used for anything including stock buybacks and bonuses to the directors. Even if the Fed does not intend for this to be free money the board of directors could easily issue billions in bonds, pocket it all and let the company go bankrupt. It would be 100% legal.
Business print paper and give it to the federal reserve. The federal reserve prints paper fiat and gives it to the businesses in exchange for their paper.
Yes. I’m a bit new to the subject but a bond isn’t stock, so the fed holds corporate debt temporarily until the bond expires, at which point the corporation pays it back with interest. How does this equate to nationalizing the economy?
I would have used adjudicating, but that word is beyond the vocabulary of almost all Voat users. I have to dumb things down to the appropriate near-nog level for people here to understand it.
BWHAHAHAHAHA looks like this tool thinks adjudicating is a word people won't understand. Maybe it was for you but I am guessing all of voat knows what the word is.
I am sorry. I should have bowed to your great wisdom and incredible vocabulary. The new wave of voaters are incredibly learned and we should thank them for their contributions and edification. So again so sorry I uttered a discouraging word and I sure hope we can be pals.
I guess that was a Whhooosssshhh then? The V wave must have resulted in some exodus from the Reddit group r/whinypussies. In time like the Q brigade, they might figure it out. Although I remain doubtful.
The old Trumpism of I know you are but what am I. Damn I would think other than children and Trump staff anybody else would be embarrassed by the old trope. Something tells me you have become numb to embarrassment. I have every confidence your parents have too.
Damn you keep trying to out stupid yourself. You really are giving the V wave a bad rap. I really don't think psychopathic is the correct diagnosis doc. You might want to reread the DSM V. It was a nice try though. You see I got the last word in. I am sure your tiny mind won't allow that to go without a retort. Now you really have a conundrum, don't you??? My guess is slink away with your tail tucked. Again something you and your kin have grown accustomed.
Maybe you didn’t see my reply due to the downvotes, som I’m going to ask again. What are you choosing to do?
Did you ever stop to think that we’re all in the same fucking boat as you? Maybe thinking isn’t your cup of tea since you have this delusion of being smarter than the rest of the users here. Or maybe that’s why you’re here, this delusion makes you feel superior.
Reality is, you doing exactly what you’re bitching about.
The… oh, sorry. I should have given the context. “They” is Congress. They’re not even adjudicators, since they’re just a puppet mouthpiece for the real decision, which was made before them.
view the rest of the comments →
Tallest_Skil ago
Don’t miscontextualize this. Congress was TOLD, and they did as they were told.
Timur9000 ago
What's
the significance of the corporate bond market?
canbot ago
A bond is an IOU that some entity (in this case a corporation) gives in exchange for cash. It's essentially a loan but instead of going to a lender they "sell" this bond on the open market to the lowest bidder to get a cheap loan with no fees or conditions. This loan concept breaks down when the bonds are being bought by the Fed with freshly printed and unlimited dollars. The Fed could never collect on the loan, making it a cash bailout.
This money can be used for anything including stock buybacks and bonuses to the directors. Even if the Fed does not intend for this to be free money the board of directors could easily issue billions in bonds, pocket it all and let the company go bankrupt. It would be 100% legal.
Spiteful_Mutant ago
The global economy is so pozzed and intertwined that letting any part of it fail will lead to cascading failures of the entire global economic system.
The real clincher is that they don't even know what will cause what to fail so they must protect every sector no matter how fucked up.
And by "protect" I mean they must let it continue to operate as is, and sometimes even let it grow. That's what happened after the 2008 debacle.
Meanwhile, Schlomo continues to play his game and get richer.
Herbert666Marcuse ago
Corporations large enough to issue bonds are owned by jews/shitlibs, and/or must honor bond maturation obligations to jew/shitlib bond holders.
By and large, GOP businessmen own small to medium sized bidnesses, which never get within a country mile of even dreaming of issuing corporate debt.
tl;dr == Floating corporate debt helps DEM businessmen & DEM bondholders, and does nothing to help the average GOP bidnessman.
"Never let a good crisis go to waste."
- Mossad Lt Col Rahm Emanuel
notajew69 ago
Business print paper and give it to the federal reserve. The federal reserve prints paper fiat and gives it to the businesses in exchange for their paper.
Tallest_Skil ago
In terms of the fed being able to directly purchase from it, you mean?
Outstretched_Bill ago
Yes. I’m a bit new to the subject but a bond isn’t stock, so the fed holds corporate debt temporarily until the bond expires, at which point the corporation pays it back with interest. How does this equate to nationalizing the economy?
NavigatorFlight ago
I would have used adjudicating, but that word is beyond the vocabulary of almost all Voat users. I have to dumb things down to the appropriate near-nog level for people here to understand it.
NPCGator ago
I'm sure you are very familiar with that word kike, now fuck off back izreal.
Dr_LeeroyJenkins ago
I scored over 300 at scrabble last night. As long as the words are 7 tiles long or less I'm good ok.
Ozzsanity ago
BWHAHAHAHAHA looks like this tool thinks adjudicating is a word people won't understand. Maybe it was for you but I am guessing all of voat knows what the word is.
englishwebster ago
..a jew dick ate?
Octoclops ago
I would have agreed with you a few months ago but intelligent people are not the majority here anymore.
Ozzsanity ago
Definitely an influx of cro mags lately.
NavigatorFlight ago
BWAHAHAHAHAHAHA so funny!
Ozzsanity ago
I am sorry. I should have bowed to your great wisdom and incredible vocabulary. The new wave of voaters are incredibly learned and we should thank them for their contributions and edification. So again so sorry I uttered a discouraging word and I sure hope we can be pals.
NavigatorFlight ago
I accept your apology, even if you've demonstrated you're a retard.
Ozzsanity ago
I guess that was a Whhooosssshhh then? The V wave must have resulted in some exodus from the Reddit group r/whinypussies. In time like the Q brigade, they might figure it out. Although I remain doubtful.
NavigatorFlight ago
Yup. Right over your head. Amazing, given the amount of hot air coming out of your mouth.
Ozzsanity ago
The old Trumpism of I know you are but what am I. Damn I would think other than children and Trump staff anybody else would be embarrassed by the old trope. Something tells me you have become numb to embarrassment. I have every confidence your parents have too.
NavigatorFlight ago
I can't decide what's more comical; your baseless attempts at getting a rise out of me, or your psychopathic need to get the last word in.
Probably both.
Ozzsanity ago
Damn you keep trying to out stupid yourself. You really are giving the V wave a bad rap. I really don't think psychopathic is the correct diagnosis doc. You might want to reread the DSM V. It was a nice try though. You see I got the last word in. I am sure your tiny mind won't allow that to go without a retort. Now you really have a conundrum, don't you??? My guess is slink away with your tail tucked. Again something you and your kin have grown accustomed.
Tallest_Skil ago
But does that even count when they’re not the ones making the decisions?
NavigatorFlight ago
They're not? Last time I checked they had the numbers, and both ammunition and rope are plentiful.
Now if you're saying they're choosing not to make the decisions, then yes, I agree - and I think that needs to change.
Gingercuntfirecrotch ago
Maybe you didn’t see my reply due to the downvotes, som I’m going to ask again. What are you choosing to do?
Did you ever stop to think that we’re all in the same fucking boat as you? Maybe thinking isn’t your cup of tea since you have this delusion of being smarter than the rest of the users here. Or maybe that’s why you’re here, this delusion makes you feel superior.
Reality is, you doing exactly what you’re bitching about.
NavigatorFlight ago
Go fish.
Gingercuntfirecrotch ago
Sure thing rabbi
Gingercuntfirecrotch ago
And what are you choosing to do?
Do you not have a stake in this?
Tallest_Skil ago
The… oh, sorry. I should have given the context. “They” is Congress. They’re not even adjudicators, since they’re just a puppet mouthpiece for the real decision, which was made before them.