{"id":31959,"date":"2020-03-18T04:28:50","date_gmt":"2020-03-18T04:28:50","guid":{"rendered":"http:\/\/www.goldco.com\/?p=31959"},"modified":"2022-12-28T06:22:24","modified_gmt":"2022-12-28T14:22:24","slug":"another-day-another-federal-reserve-bailout","status":"publish","type":"post","link":"https:\/\/goldco.com\/another-day-another-federal-reserve-bailout\/","title":{"rendered":"Another Day, Another Federal Reserve Bailout"},"content":{"rendered":"<p>The bad news just keeps getting worse and worse. After a <a href=\"https:\/\/goldco.com\/fed-trying-destroy-stock-markets\/\" target=\"_blank\" rel=\"noopener noreferrer\">100-basis point rate cut<\/a> and $700 billion in quantitative easing, the Federal Reserve has announced that it is opening up a new <a href=\"https:\/\/www.federalreserve.gov\/newsevents\/pressreleases\/monetary20200317a.htm\" target=\"_blank\" rel=\"noopener noreferrer\">Commercial Paper Funding Facility<\/a> (CPFF) to provide a bailout of commercial paper markets. The new special purpose vehicle (SPV) will purchase commercial debt that is rated at least A1. While that\u2019s good news for some companies, it\u2019s not good for the numerous companies whose debt is rated BBB, just one step up from junk.<\/p>\n<p>What the Fed\u2019s new facility is, is a bailout of corporate America. With $10 trillion in corporate debt outstanding in the US, over 50% larger than the total amount of outstanding corporate debt during the 2008 financial crisis, that <a href=\"https:\/\/goldco.com\/corporate-debt-continues-spiral-control\/\" target=\"_blank\" rel=\"noopener noreferrer\">mountain of debt has been weighing heavily<\/a> on corporations. And with the economy all but completely shut down as a result of coronavirus fears, numerous corporations will have difficulty servicing their debt as consumer spending grinds to a halt.<\/p>\n<p>That\u2019s one reasons the Fed has decided to start up the CPFF again, which last operated during the 2008 financial crisis. While its intent is to provide a liquidity backstop for companies facing difficulties, what the Fed is signaling once again by its creation of an emergency funding facility is that the economy is in a difficult spot that will only get worse. In fact, at this point it would not be at all surprising to see all the Fed\u2019s various emergency funding vehicles brought back into play.<\/p>\n<p>From the Term Auction Facility to the Money Market Investor Funding Facility, they will all return as this contagion will only get worse as the economy slows due to government actions to shut down economic activity. Investors who think they\u2019ve seen the worst of things already need to brace themselves for even more cataclysmic drops in markets. The economy was already set to feel the effects from the coronavirus in China, but with the US shutting down as well, the risk is no longer that we\u2019re going to fall into recession, but rather that we\u2019ll fall into a depression.<\/p>\n<p>If you haven\u2019t already made plans to protect your investments, what are you waiting for? Many investors got out weeks ago, after the initial coronavirus fears began to subside only slightly. They saw the writing on the wall, feared the worst, and escape the recent stock market bloodbath. But many more investors saw the crash as an opportunity to buy, thinking that each \u201cworst day ever\u201d was the bottom. We won\u2019t see the bottom for quite a while, possibly even for months. So those who stick to stocks will likely see significant future losses.<\/p>\n<p>The case for <a href=\"https:\/\/goldco.com\/gold-ira\/\" target=\"_blank\" rel=\"noopener noreferrer\">investing in gold<\/a> has never been better, which is why so many investors are looking to put their assets into gold. With a gold IRA they can even roll over existing retirement assets into gold without tax consequences. So what are you waiting for? Don\u2019t let your investments lose any more value \u2013 invest in gold today.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The bad news just keeps getting worse and worse. After a 100-basis point rate cut and $700 billion in quantitative easing, the Federal Reserve has announced that it is opening up a new Commercial Paper Funding Facility (CPFF) to provide a bailout of commercial paper markets. The new special purpose vehicle (SPV) will purchase commercial [&hellip;]<\/p>\n","protected":false},"author":13,"featured_media":32192,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[208],"tags":[233,218,388,491,623,642],"class_list":["post-31959","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-federal-reserve","tag-economy","tag-federal-reserve","tag-qe","tag-quantitative-easing","tag-stock-markets","tag-zirp"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.0 (Yoast SEO v25.0) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Another Day, Another Federal Reserve Bailout &#8211; Goldco<\/title>\n<meta name=\"description\" content=\"With the opening of the Federal Reserve&#039;s Commercial Paper Funding Facility, the Fed is taking us back to the dark days of the 2008 financial crisis.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/goldco.com\/another-day-another-federal-reserve-bailout\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Another Day, Another Federal Reserve Bailout &#8211; Goldco\" \/>\n<meta property=\"og:description\" content=\"If you&#039;re wondering why the Federal Reserve is doing what it&#039;s doing, you&#039;re not alone. Rather than helping markets, the Fed&#039;s moves are causing much harm.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/goldco.com\/another-day-another-federal-reserve-bailout\/\" \/>\n<meta property=\"og:site_name\" content=\"Goldco\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/goldcopreciousmetals\" \/>\n<meta property=\"article:published_time\" content=\"2020-03-18T04:28:50+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-28T14:22:24+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/goldco.com\/wp-content\/uploads\/2021\/09\/Goldco-Homepage-1200x630-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Paul-Martin Foss\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:description\" content=\"Stock markets continue their meltdown, and not even a $1.5 trillion guarantee from the Fed could stop them. 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