Has the Fed EVER bought stocks? That's not what they do. Their knobs are money supply and interest rate.
as with VCs taking convertible debt instead of equity, where we see that the line is actually pretty fuzzy, now we've got feds taking stock as collateral ... which can be forfeit if the debt isn't paid so I want to say "doesn't update my priors AT ALL"...but also realize I dunno
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perhaps someone who knows more about this (@unhygenicmacro ,
@ByrneHobart ) wants to weigh in ? -
Classic central banks. No, we're not "buying" stocks! Heavens no. We're just issuing an indefinite term, hundred cents in the dollar non-recourse loan against stocks. The ECB pioneered this with the Euro bailout.
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