The US Central Bank said this week that it will widen the number of local governments from which it will buy debt through a forthcoming lending program. More than 200 municipalities will be allowed to participate.
RT’s Boom Bust talks to Todd Horwitz of Bubba Trading about the Fed’s latest actions and their impact on the current situation amid the coronavirus crisis.
“They’ve done absolutely nothing; they’ve now intervened about eight times into this and all they’ve really done is torched the middle class,” Horwitz says.
“The best thing they could have done is to just to make a lending program, lower the rates, and give them extended time to pay for it instead of giving away more free money that has artificially kept the stock market higher and really created nothing.”
Horwitz explains that handing out money is not going to change anything until the country reopens. “And all this money is not going to help anybody because at the end of the day we need a growing and moving economy where the velocity of money goes through the economy. Right now, the money goes into the hands of individuals and sits there.”
He adds that “at the end of the day, this has been, in my opinion, a total bust, and, of course, the Fed in their usual stand has really created a lot more issues down the road when they actually tried to cure what we have right now.”
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