At the end of 2018, the quiet little town of Boca Chica changed forever as SpaceX started to build and test their new Starship rocket. After multiple tests it was clear that the residents of Boca Chica couldn’t coexist with SpaceX, so the company began the process of buying out every property. Offers of triple-value didn't convince many homeowners - negotiations on the remaining 7 are continuing
Nouriel Roubini, NYU professor and former White House senior economist under U.S. President Clinton, joins BNN Bloomberg to discuss why he predicts a depression will hit the global economy in the middle of the decade.
Congress allocated $454 billion in equity to backstop the Fed loans as part of the more than $2 trillion economic relief package passed in March. The secondary market facility is the first Fed program using funds from the stimulus law to get going. Fed officials first announced the creation of the corporate credit facilities on March 23. . . https://www.bloomberg.com/news/articles/2020-05-12/fed-says-it-will-begin-purchasing-corporate-debt-etfs-on-tuesday _________________________________________________________________
WATCH: The Fed said a facility designed to purchase eligible corporate debt from investors will launch today.
The reserve bank also posted to its website the investment management agreement with BlackRock, the asset-management giant it’s retained to administer the program. The document offered more information on the strategy the Fed would pursue.
Corporate-debt buying, including via ETFs, will occur in three stages, according to the agreement:
a “stabilization” phase
an “ongoing monitoring” phase, and
a “reduction in support” phase.
“Purchases will be focused on reducing the broad-based deterioration of liquidity seen in March 2020 to levels that correspond more closely to prevailing economic conditions,” the document said. It listed an array of metrics that would guide investments, including transaction costs, bid-ask spreads, credit spreads, volatility and “qualitative market color.”
The corporate credit facilities are among the nine emergency lending programs the Fed is rolling out to help cushion the blow to the U.S. economy from the pandemic and keep credit flowing. They mark a dramatic escalation of the central bank’s interventions in financial markets by stepping into corporate debt -- potentially including the purchase of some sub-investment grade securities -- for the first time since the 1950s.
During the last crisis, the economist Nouriel Roubini earned the nickname "Dr. Doom" for his ominous prognostications about the economy and financial system. While he prefers the moniker "Dr. Realist" Roubini is once again extremely negative. On this week’s episode he explains why he sees a poor recovery, then a bout of inflation, and then ultimately a depression in the wake of this crisis.
Nouriel Roubini Sees A Bad Recovery And A Depression After Covid-19
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Janette Sadik-Khan, Principal with Bloomberg Associates and Chair of NACTO, appears on CNN's "Fareed Zakaria GPS" to explain how cities will adjust and adapt after COVID-19.
