MyDailyFunDose

With regards to propping up the share trading system

 

With regards to propping up the share trading system in the US, the Federal Reserve does as such with a specific level of subtlety, keeping no less than one layer of disintermediation amongst itself and the market, which ordinarily includes “prompting” Citadel to mediate with regards to intense snapshots of market stress, giving the HFT-overwhelming flexible investments a green light to stop and invert and fierce selloffs, or all the more customarily, permitting organizations to repurchase their own stock because of (up to this point) record low loan fees. This is just the same old thing new: as Goldman has over and over pointed out, in 2016 organizations have been the biggest wellspring of value request, obtaining $450 billion of US value through buybacks and money M&A (net of share issuance). Outside of the Great Recession, corporates have been the essential wellspring of US value request (see Exhibit 1).

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