Faber News Flow

As it was showed last week (in 20 charts) while 2020 was certainly an unforgettable year for stocks, it was actually credit where the real action was - or as Goldman put it  "a year like no other"  - for two reasons: i) the direct injection of over $10 trillion in liquidity by central banks in the span of just weeks after the March crash had a direct goal of stabilizing the rates market where US treasury yields briefly became unhinged amid the wholesale liquidation, threatening the collapse of hundreds of trillions in rate-linked securities; ii) the second, and more important reason, is that on March 23, Fed chair Jerome Powell crossed a rubicon that even Bernanke stayed away from when the Fed effectively soft-nationalized the entire bond market, announcing it would buy corporate bonds in both the primary and secondary market, including investment grade and junk bond ETFs. Naturally, apologists argue that the Fed had no choice, as the alternati

No Wonder the Cry Babies on Wall Street are clamoring for more. Five SPVs,  already on ice, will expire on December 31. The Fed released  details  today of its corporate-bond purchases in November ($215 minuscule millions) and corporate-bond ETF purchases in November (zilch). Last time it bought any ETFs had been on July 23. It released details about its other activities in its Special Purpose Vehicles (SPVs), which are essentially on ice. Five of them will expire on December 31, including the SPV that handles the corporate bond purchases. The Fed unwound its "repo" positions in early July down to zero, and more recently most its "central bank liquidity swaps." Its purchases of residential mortgage-backed securities (MBS) have been in a holding pattern since mid-September. What it is still buying at a steady clip are Treasury securities, thereby monetizing part of the debt the government is adding monthly to its gigantic pile. The net effect is that its total assets