Economic Stimulus or Corporate Welfare? You tell me.

The Wall Street Journal:

The European Central Bank’s corporate-bond-buying program has stirred so much action in credit markets that some investment banks and companies are creating new debt especially for the central bank to buy.

In two instances, the ECB has bought bonds directly from European companies through so-called private placements, in which debt is sold to a tight circle of buyers without the formality of a wider auction.

What?

If anyone can explain to me on what planet we should look at this latest development and say that it, in any way, resembles an attempt at economic stimulus, I’m all ears.

I cannot even imagine the discussions that must take place wherein the participants of this sham convince themselves that there is a transmission mechanism for this to become stimulative for real people in the real economy.

The Europeans were a few years late to QE, but they’re now making up for it with a vengeance.

Source:

Seller’s Paradise: Companies Build Bonds for European Central Bank to Buy (Wall Street Journal)

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers

Please see disclosures here.

What's been said:

Discussions found on the web
  1. sex commented on Sep 18

    … [Trackback]

    […] Information on that Topic: thereformedbroker.com/2016/08/22/economic-stimulus-or-corporate-welfare-you-tell-me/ […]

  2. 사설토토 commented on Oct 16

    … [Trackback]

    […] Information to that Topic: thereformedbroker.com/2016/08/22/economic-stimulus-or-corporate-welfare-you-tell-me/ […]

  3. how to order marijuana online commented on Nov 21

    … [Trackback]

    […] There you will find 24711 additional Info on that Topic: thereformedbroker.com/2016/08/22/economic-stimulus-or-corporate-welfare-you-tell-me/ […]

  4. PG SLOT commented on Nov 25

    … [Trackback]

    […] Read More here on that Topic: thereformedbroker.com/2016/08/22/economic-stimulus-or-corporate-welfare-you-tell-me/ […]

  5. replica rolex watch cheap commented on Nov 25

    … [Trackback]

    […] Find More Information here to that Topic: thereformedbroker.com/2016/08/22/economic-stimulus-or-corporate-welfare-you-tell-me/ […]

  6. replica Watches Movado commented on Dec 08

    … [Trackback]

    […] There you will find 28553 additional Information on that Topic: thereformedbroker.com/2016/08/22/economic-stimulus-or-corporate-welfare-you-tell-me/ […]

  7. regression testing commented on Dec 18

    … [Trackback]

    […] Find More to that Topic: thereformedbroker.com/2016/08/22/economic-stimulus-or-corporate-welfare-you-tell-me/ […]

  8. functional testing commented on Dec 19

    … [Trackback]

    […] Find More here on that Topic: thereformedbroker.com/2016/08/22/economic-stimulus-or-corporate-welfare-you-tell-me/ […]

  9. wdfreplica commented on Dec 31

    … [Trackback]

    […] Read More on that Topic: thereformedbroker.com/2016/08/22/economic-stimulus-or-corporate-welfare-you-tell-me/ […]

  10. Canning Rosemary Onion Confit commented on Jan 13

    … [Trackback]

    […] Here you can find 13984 more Information to that Topic: thereformedbroker.com/2016/08/22/economic-stimulus-or-corporate-welfare-you-tell-me/ […]