Caption: Through the Primary Market Corporate Credit Facility, the Federal Reserve will provide $500 billion to companies by buying bonds, but the companies will not be required to retain employees or limit executive pay. See accompanying story below. Credit: Public Domain
Federal assistance during the coronavirus pandemic is crucial. This page will look at ways in which allocation of these resources is directed not to those who most need it, but to large corporations, the wealthy, and the financial sector, as well as basic information about the federal assistance.
The best article HE has read on how Wall Street is obtaining large benefits from the pandemic relief package.
How big finance Is making a killing from the pandemic Ramaa Vasudevan Jacobin June 11, 2020
In spite of mass unemployment and a public health catastrophe, the stock market has been thriving, thanks to massive intervention by the Federal Reserve. We have to break the doom loop that links the Fed to the interests of financial megafirms.
This Treasury official Is running the bailout. It’s been great for his family. Justin Elliott, Lydia DePillis and Robert Faturechi ProPublica June 2, 2020
‘Lining up at the trough’: Federal Reserve to offer corporations $500 billion no-strings-attached bailout loophole Julia Conley Common Dreams April 28, 2020
Large, troubled companies got bailout money in small-business loan program Jessica Silver-Greenberg, David Enrich, Jesse Drucker and Stacy Cowley New York Times April 28, 2020
This article describes how companies which would be thought not qualified for a small-business loan program did in fact receive one. Of the $349 billion in low-interest loans for small businesses more than 200 publicly traded [= not-small] companies have disclosed receiving a total of more than $750 million in bailout loans.
The tax-break bonanza inside the economic rescue package Jesse Drucker New York Times April 24, 2020
As small businesses and individuals struggle to obtain federal aid, the wealthiest are poised to reap tens of billions of dollars in tax savings.
Failing to help those who need it most Editorial Board New York Times April 24, 2020 (Opinion)
House passes $484 billion bill with money for small businesses, hospitals and testing to battle coronavirus Erica Werner Washington Post April 23, 2020
Banks gave richest clients ‘concierge treatment’ for pandemic aid Emily Flitter and Stacy Cowley New York Times April 22, 2020
Some businesses seeking coronavirus loans got to avoid flaky online portals or backed-up queues. Many other small businesses couldn’t get their loan requests submitted before the money dried up.
Starve the beast, feed the depression Paul Krugman New York Times April 16, 2020 (Opinion)
Anti-government ideology is crippling pandemic policy.
How the government pulls coronavirus relief money out of thin air Matt Phillips New York Times April 15, 2020
Once-fringe ideas in economic theory are now nearly official policy as government borrowing surges and the Federal Reserve signals it could buy unlimited debt.
Failure to help those that need it the most Editorial Board New York Times April 15, 2020
The distribution of coronavirus bailout funds requires more attention.
Here’s what’s in the $2 trillion virus stimulus package John Harney / Bloomberg Washington Post March 27, 2020 IRS has paid out over $218 billion in stimulus checks Andrew Keshner MarketWatch May 11, 2020
How the Fed’s magic money machine will turn $454 billion into $4 trillion Jeanna Smialek New York Times March 26, 2020
The central bank takes Treasury Department loan guarantees and uses them to stand up huge programs. Here’s how that works.
$29,000,000,000,000: A detailed look at the Fed’s bailout by funding facility and recipient James Felkerson Levi Economics Institute November, 2011 Original and important research detailing the financial sector bailout undertaken by the Federal Reserve during the 2007-09 financial crisis, showing that it was much larger than previously understood. Very helpful for understanding what the Fed is doing now, on what will be an even larger bailout.