WHAT COULD GO WRONG? OR WHERE YOUR MONEY IS GOING?

Mother Jones reported that Justin Muzinich, a 42 year old deputy secretary of the Federal Reserve, had the responsibility for the majority of the 3 trillion dollar bailout monies.   A major beneficiary of the bailout so far has been Muzinich & Co., a company that was founded by his father.  Justin was a prior president of his father’s firm.  His stake was reported to be $60 million when he joined the Trump administration.  He has an opaque tie to his firm, in that his father is holding his shares in a trust type arrangement.  This arrangement is questionable yet it has been allowed. In March, as a result of the potential damage of the virus, the Fed began buying up corporate debt.  This policy allowed those companies heavily invested in corporate loans, to recoup huge loses with the Fed (you and I) holding the bag.  This wreaks of a bad deal for everyone except? 

Muzinich & Co has specialized in this debt market with trading in lower rated bonds.  The Company manages 38 billion dollars of client monies.  These investments included investments known as junk or high yield bonds.  Since March the bond market has roared back and the Muzinich & Co reversed billions in losses.   Based on 28 of the 29 funds of this type (junk bond traders) that are tracked, have increased in value since March.  This trend reversed the nose dive and reported positive values as a result of the virus.  This is only an indication that anyone has of potential profits since Muzinich & Co. is privately held and does not report earnings. Justin was personally involved in the bailout effort planning.  Including crafting the bailout of the junk bond market.  You don’t think there was any grifting going on do you?

It was also reported that this is not the only junk bond and risky investment firms Trump bailed out.  The administration was busy buying paper from all kinds of hedge funds and specialty investment firms.  I question whether or not the Fed is purchasing questionable and high-risk mortgages from the banks?  Without oversight, who knows what is being done with your money?

There is a reason they are called Junk Bonds.  They usually have a lesser chance of being repaid and thus higher interest rates. This is another magical thinking move that can go very wrong without a vaccine and if the second wave of the virus is similar to 1918-1919.  A trillion dollars here and a trillion dollars there, pretty soon you are talking about some real money.

Ultimately instead of having a capitalist Constitutional republic, we have a socialistic capitalistic autocratic system with oligarchs?  The only normal way for re-distribution of wealth can occur is if failure is not rewarded.  Bailouts should be put in at the bottom at the wage earner level since we are the ones that will repay the debt, and not the individuals at the top.  Trump uses his bailout as an effort to have stock buyouts propping up the stock market indices. 

The actions of the Fed must be noted as highly unusual.  Never in 100 years, and not even in the great depression did the Fed gamble with public debt.  It’s like the government told you what number to bet on in roulette with your money.  This type of action can only occur in the fog, created by the daily light show and sweeping these obnoxious actions under the rug. Will these Fed actions ultimately be turned into the norm, as a tool with the Fed being the house and rolling the loaded dice picking winners and losers for you and I?

I keep throwing up in my mouth.  Trump has managed to keep his failure to handle the Pandemic off the news and now it’s on to manipulating  the unemployment numbers, propping up the stock markets with dollars and with magical promises of a vaccine.  All to make the appearance of a happy economy.  It’s only optics and the showman wins again.

Below is a link to the entire article please read you may be enlightened. 

https://apple.news/ADmdH4ZbNTSqgvChFcGCSug

REAL OR EMPTY THREAT?

Rumor has it Trump is still searching for an alternative site for his convention show.  This is an update to Trump’s desire to spread the virus, with a full convention of unmasked, avid supporters and potential covid carriers cheering him on shoulder to shoulder packed in like sardines.  He is still looking for an alternate site to spread his vial spew. 

Is Trump upping the chances for a second round of the virus to depress the vote?  Look at the numbers of the Individuals that responded to a recent study, it showed that 83% of Trump supporters seldom or never wear a mask and the same number for Biden supporters was 7%.  It’s like Bobby Jindal (Republican) said, “the party is becoming the party of stupid”.  Trump has managed to politicize a national public health crisis. 

Wherever it is going to be held, I’m sure some of things he will do are lie, brag, divide, accost, demean, blame others, and show no empathy.  All in a great optical carnival show style selling his stable muck from the stable genius Trump.

 The governor is following the Trump administration’s own CDC guidelines to insure the health and safety of its citizens.  Roy will not commit to any of Trumps demands until the guidelines permit that type of convention.  Lincoln said “malice toward no one”. Trump’s motto is malice toward everyone.

August convention should be fun and the election is Nye.  It’s getting too close to choose an alternate site or is he just pressing the democratic Roy Cooper governor N.C. to lighten up on packed crowds cheering in each other’s face?   I’m banking on a Trump’s packed crowd show in August in defiance of sound medical advice.