Boiler Room: The Official Stock Market Discussion
Same. Sold all of my non-airline stocks & PK today. I'm keeping those long-term.
Yall holding puts are fukked
Federal Reserve unveils details of $2.3 trillion in programs to help support the economy
Federal Reserve unveils details of $2.3 trillion in programs to help support the economy
PUBLISHED THU, APR 9 20208:30 AM EDTUPDATED MOMENTS AGO
Jeff Cox@JEFF.COX.7528@JEFFCOXCNBCCOM
The Federal Reserve on Thursday released long-awaited details regarding its Main Street business lending program and several other initiatives it is undertaking to backstop the reeling U.S. economy.
Under provisions outlined for the first time, the loans would be geared toward businesses with up to 10,000 employees and $2.5 billion in revenues for 2019.
The Fed said the programs would total up to $2.3 trillion and include the Payroll Protection Program and other measures aimed at getting money to small businesses and bolstering municipal finances with a $500 billion lending program.
“Our country’s highest priority must be to address this public health crisis, providing care for the ill and limiting the further spread of the virus,” Fed Chair Jerome Powell said in a statement. “The Fed’s role is to provide as much relief and stability as we can during this period of constrained economic activity, and our actions today will help ensure that the eventual recovery is as vigorous as possible.”
The Main Street loans would be a minimum of $1 million and a maximum of either $25 million or an amount that “when added to the Eligible Borrower’s existing outstanding and committed but undrawn debt, does not exceed four times the Eligible Borrower’s 2019 earnings before interest, taxes, depreciation, and amortization,” whatever is less, according to a Fed release.
The total dollar amount geared to the program is $600 billion.
Terms would see an interest rate equal to the Fed’s Secure Overnight Financing Rate, currently 0.01%, plus 250-400 basis points with a four-year maturity.
A special-purpose vehicle that Fed created jointly with the Treasury Department will purchase 95% of the loan while the financing institution would hold the other 5%.
In addition to the Main Street program aimed at mid-size companies, the Fed also announced a move to “bolster the effectiveness” of the PPP by getting more liquidity through credit extensions to institutions lending through the program.
While the Fed already has entered the municipal bond market, the latest steps establish a new Municipal Liquidity Facility that will offer up to $500 billion in lending to states and municipalities. The Treasury will provide a $35 billion backstop to the program to guard against potential losses.
Federal Reserve unveils details of $2.3 trillion in programs to help support the economy
Federal Reserve unveils details of $2.3 trillion in programs to help support the economy
PUBLISHED THU, APR 9 20208:30 AM EDTUPDATED MOMENTS AGO
Jeff Cox@JEFF.COX.7528@JEFFCOXCNBCCOM
The Federal Reserve on Thursday released long-awaited details regarding its Main Street business lending program and several other initiatives it is undertaking to backstop the reeling U.S. economy.
Under provisions outlined for the first time, the loans would be geared toward businesses with up to 10,000 employees and $2.5 billion in revenues for 2019.
The Fed said the programs would total up to $2.3 trillion and include the Payroll Protection Program and other measures aimed at getting money to small businesses and bolstering municipal finances with a $500 billion lending program.
“Our country’s highest priority must be to address this public health crisis, providing care for the ill and limiting the further spread of the virus,” Fed Chair Jerome Powell said in a statement. “The Fed’s role is to provide as much relief and stability as we can during this period of constrained economic activity, and our actions today will help ensure that the eventual recovery is as vigorous as possible.”
The Main Street loans would be a minimum of $1 million and a maximum of either $25 million or an amount that “when added to the Eligible Borrower’s existing outstanding and committed but undrawn debt, does not exceed four times the Eligible Borrower’s 2019 earnings before interest, taxes, depreciation, and amortization,” whatever is less, according to a Fed release.
The total dollar amount geared to the program is $600 billion.
Terms would see an interest rate equal to the Fed’s Secure Overnight Financing Rate, currently 0.01%, plus 250-400 basis points with a four-year maturity.
A special-purpose vehicle that Fed created jointly with the Treasury Department will purchase 95% of the loan while the financing institution would hold the other 5%.
In addition to the Main Street program aimed at mid-size companies, the Fed also announced a move to “bolster the effectiveness” of the PPP by getting more liquidity through credit extensions to institutions lending through the program.
While the Fed already has entered the municipal bond market, the latest steps establish a new Municipal Liquidity Facility that will offer up to $500 billion in lending to states and municipalities. The Treasury will provide a $35 billion backstop to the program to guard against potential losses.
Fed gonna make sure the market doesn't tank again. Might as well get in now if you haven't already brehs.
Chrome2279
All Star
So all in on ERI today?
im adding to my positions today, fawk a dip
The market doesn't really react to a lot in real time. it attempts to anticipate where things are going next and price that in.This shyt doesn’t even make sense.
In other words, investors think the worse is over.
Maybe they think like me and don't think it was that serious to begin with.
MaxBundles
Veteran
Damn, im up crazy right now. fukk is going on?
This was very serious. It was mitigated by the fact that the vast majority of the county went into stay at home orders. Had that not happened no doubt the death toll would have been several million. Even the stay at home orders will put companies out of business. Companies on the edge like JC Penny's won't survive this.
Investors are pricing in a fast recovery.
REIT going back up