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‘Setting Biden Up For Disaster’: Steve Mnuchin Faces Allegations Of Sabotage
Steve Mnuchin came under what it's fair to describe as intense scrutiny on Friday, after essentially demanding the Fed return funding that supports emergency facilities which have played a key role in stabilizing markets since the onset of the pandemic.
Mnuchin does have a plausible excuse. Credit spreads, for example, have compressed mightily thanks to the Fed's backstop for the US corporate bond market. Indeed, corporate borrowers have tapped the primary market in record amounts over the cour
Aside from the two or three national security related cabinet positions, I’d put Treasury at the top of the list for needing a smooth transition from one administration to the next.
Of course, we’re dealing with arsonists now and had to expect they’d get around to tearing down the market edifice. If I had to guess, I’d say every one gets their Santa Claus rally, then tax loss selling and rebalancing as usual, then watch out in January.
Mnuchin did us all a “favor” by being so public about the administration’s intent; we were just telegraphed that equities are in play for a January burn down.
It looks possible to have another covid shutdown (probably with protests and holiday visitation anyway?) combined with no stimulus and a government shutdown? That goes along with scorched earth. Then if Trump is still in charge of the republican party will we not get anything done for 4 more years despite covid? Hopefully the virus doesn’t mutate.
H, I admire your ability to day after day talk about the underlying craziness of US politics and governance in a calm rational way. I can only read a little of the daily ranting of most news sources before my head is ready to explode. Your commentary helps me keep my sanity and is invaluable for managing my investments. Many thanks to you and also to your readers who generally post thoughtful intelligent comments.
clearly this is a political calculation – i would bet emanating out of the white house. We have 61 more days of this nonsense- hopefully only 61 days….
I fear this will go on beyond the 61 days…assuming the Biden Administration becomes a reality it must not sweep this lawlessness and hostility to humankind under the carpet. Trump and others in positions of responsibility must be held accountable for the death and suffering they are causing, the sooner the better.
They should, but who is going to hold them responsible? Voters? The Senate?
The people who care enough to see justice served are in the minority with this view.
YEP!
And the issue is it then emboldens the next batch of Rs politicians to go even further…
IMHO, while an understable decision by Obama, not indicting GWB, Cheney and co over the Iraq War was the clearest sign that Rs will never be held accountable – as long as their base, 40 to 45% of the public, supports them. And, since then, they’ve done nothing but upping the ante.
ideally the voters, so sad that the thought of voters holding corrupt leaders accountable is a pipe dream away in our current world (democracy), of course with so much of the press co opted we can see why this is so … I remember Jesse Helms going after CBS in the 1970’s …
(excellent comment thread, everyone)
No worries! The prosecutors in the NYC area alone will bleed him dry via lawyer’s fees.
The only scenario in which I love attorneys.
Amen!
if found guilty.
When will the third of the country that accepts this behavior wake up?
Seriously……………………………………….
All this “stuff” is off the charts, dangerous, ridiculous, etc. This kind of “stuff” is not acceptable to true Americans.
Yes, I have been wondering myself when people will wake up. This incident of risking a deflationary depression has finally drawn outrage.
…imagine if we open limit down on Monday.
First step in getting rid of the roadblock to stimulus… Mitch won’t cave until the wealthy are feeling the heat as well as the masses.
I’ll admit I was not enamored with some of the Fed facilities when initially implemented, but they have indeed worked and have given us constantly numb credit markets. To end the facilities now is madness and makes zero economic sense, the drug is working but the patient is far from healthy, Mnuchin knows this, we are witnessing another Trump power play because he would hate nothing more than a rising market under president Biden.
Totally.
The Fed is the only instrument of power in this country that kept us from a deflationary siphon. Who cares that some of the funds were misallocated, or that some was not even allocated. We need to make absolutely certain that the Fed is there and ready should there be any whiff at all of a collapse. Sentiment cannot be allowed to turn. We’ve seen in March what happens when sentiment turns.
We have to make sure we avoid a deflationary depression. Full stop.
“Risking financial crash,” etc. Now having had a couple of hours to scan through different media sources and read the pundits. I’m surprised at all the pushback in the media about this. Haven’t seen anything like it. Of course, there are at least a pair in the Red Senate who fully support “risking a financial crash.”
Finally, some outrage.
That ending. Bellissimo.
Here’s a post made today to a friend’s FB page. The Russian trolls have done a masterful job.
“You should know by now that you have been highly MANIPULATED & totally BRAINWASHED during the last 3 decades by your ULTRA LIBERAL leftist/globalist party which do NOT REPRESENT real ‘DEMOCRACY’ anymore, but “GLOBALISM & TOTALITARISM” with the NEW WORLD ORDER & its POISONOUS VACCINE ! I simply pity you… but you should learn the truth!”