When the Federal Reserve Chairman, Jerome Powell, recently said that the economy will never return to what it was, in the past, I took note. Moreover, though, all the initial backslapping going on between Chair Powell and Treasury Secretary Steve Mnuchin as the Special Purpose Vehicles (SPV) spun up was offset when Mnuchin decided to pull the plug on bondholders continuing to become obscenely wealthy as the common man paid the price. But given how small the actual amounts were in these SPVs, and given the magnitude of its QE binge – $3 trillion in three months – it is clear that letting these essentially unused facilities expire as planned isn’t going to matter to the real economy, though it might matter a little to the speculators and investors who got rich off the jawboning, but they had it so good for so long and they shouldn’t complain. Wolf Street goes on,
The Fed should have never been allowed to buy corporate bonds and corporate bond ETFs, which trade on the stock market. But it did so anyway for the first time ever. Back during the Financial Crisis, it should have never been allowed to buy mortgage-backed securities, but it did for the first time ever, and now it’s standard policy – and a $2-trillion line-item on the Fed’s balance sheet.
With respect to the fact that we are never returning to the old economy, here is how CNN put it,
Federal Reserve Chairman Jerome Powell doubled down on his remarks that the economy as we know it is over during a virtual appearance Tuesday at the Bay Area Council Business Hall of Fame Awards Ceremony.“We’re not going back to the same economy, we’re going back to a different economy,” Powell said, echoing comments he made at the European Central Bank’s Forum on Central Banking last week.
The belief that one President or another will be able to navigate the crisis better is the epitome of insanity. First, Presidents do not really do anything other than execute a few Executive Orders and piss off one Party or the other. It is their advisors and Cabinet heads whom actually execute the goals. You will notice I left Congress out of that statement. The reason is that for the past 20+ years, Congress has done nothing but grow old and suck the American public’s lifeblood out of the golden troughs they have so meticulously strewn around the Washington DC Beltway.
Rep. Don Young of Alaska, is 87 years old and has been elected to his 25th term. Senator Chuck Grassley is 87. House Speaker Nancy Pelosi is 80. And our President Elect Joe Biden is 77.
For the past four consecutive years, the Mortgage Field Services Industry, by and through National Association of Mortgage Field Services (NAMFS) members, have continued to reduce the amount of pay to Field Service Technicians while simultaneously increasing the amount of chargebacks stolen from misclassified employees.
What we have is a complete routing of the economy and workforce. In essence, anything which isn’t nailed down is going out the door. If the task may be accomplished with a computer, the workforce is shifting home. And with that shifting, there are no more added benefits for the power, internet, or anything else used by the employee. In fact, many employees are being advised that their pay will decrease.