Increasing Global Economic Collapse; Fed creating stock market bubble by printing trillions of dollars in coronavirus relief

13 Jul, 2020 RT

The $3 trillion rescue plan by the US Federal Reserve to limit the economic damage from the Covid-19 pandemic is fueling excesses across US capital markets, investors say.

The Fed has pledged unlimited financial asset purchases to sustain market liquidity, increasing its balance sheet from $4.2 trillion in February to $7 (7) trillion currently.

Most of those purchases have been limited to US Treasuries and mortgage-backed securities, but the Fed’s pledge to bolster the corporate bond market has been enough to spur a frenzy among investors for bonds and stocks.

“Covid-19 is now inversely related to the markets. The worse that Covid-19 gets, the better the markets do, because the Fed will bring in stimulus. That’s what has been driving markets,” Andrew Brenner, head of international fixed income at NatAlliance, was cited as saying by Reuters.

The market bubbles that investors are attributing to the Federal Reserve’s fight with the pandemic include the stock market bonanza and the IPO frenzy. Analysts point out that the Fed hasn’t bought stocks as part of its financial stimulus programs, but its near-zero interest rates and credit support for large swaths of corporate America have driven yield-hungry investors back to the equity market.

Since their bottom on March 23, the S&P 500 and the Dow Jones Industrial Average have both surged over 40 percent, with the Nasdaq composite gaining nearly 60 percent. The S&P 500’s forward price-to-earnings ratio is currently 21.5 – a level last seen during the dotcom boom 20 years ago.

The stock market euphoria was followed by an initial public offerings (IPOs) frenzy.

Refinitiv international financing review data showed that a record $184 billion was raised in US equity capital markets in the second quarter. Over $8.9 billion worth of IPOs in the second quarter were priced above the target range – the highest amount since the third quarter of 2014, according to Dealogic.

“Why anyone would buy Nissans at Bentley prices is beyond me, but that’s what happens generally with any sexy IPO. Sure, the Nissan has four wheels and it’s fine transportation, but is it worth a Bentley valuation?” Richard Bernstein, CEO of Richard Bernstein Advisors, told Reuters.

Meanwhile, the US regulator’s bond-buying programs have encouraged companies to tap credit markets and made the second quarter the busiest ever for debt issuance. Some $1.2 (6+6) trillion of investment-grade paper was sold in the first half of 2020, which is the highest issuance volume ever recorded by the Securities Industry and Financial Markets Association. Even though the Fed refrained from buying most junk-rated bonds, issuance was at $200 billion through June – more than double last year’s rate.

“Investment grade and high yield bonds had an incredible quarter, in terms of issuance and performance. We just continue to see more and more money flow into those markets,” said Ted Swimmer, head of capital markets at Citizens Commercial Banking. “But there’s been so much new issuance in the second quarter, you get concerned you’re not going to see a ton of new issuance in the third quarter,” he added.

In His Service,

Night Watchman

Paul Rolland

Night Watchman Ministries

Make Your Decision for Christ NOW!!!!!!! Time is Up!!!!!!!

Jesus Christ’s Offer of Salvation:

The ABCs of Salvation through Jesus Christ (the Lamb)

A. Admit/Acknowledge/Accept that you are sinner. Ask God’s forgiveness and repent of your sins.

. . . “For all have sinned, and come short of the glory of God.” (Romans 3:23).

. . . “As it is written, There is none righteous, no, not one.” (Romans 3:10).

. . . “If we say that we have no sin, we deceive ourselves, and the truth is not in us.” (1 John 1:8).

B. Believe Jesus is Lord. Believe that Jesus Christ is who He claimed to be; that He was both fully God and fully man and that we are saved through His death, burial, and resurrection. Put your trust in Him as your only hope of salvation. Become a son or daughter of God by receiving Christ.

. . . “That whosoever believeth in him should not perish, but have eternal life. For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him should not perish, but have everlasting life. For God sent not his son into the world to condemn the world; but that the world through him might be saved. (John 3:15-17). For whosoever shall call upon the name of the Lord shall be saved.” (Romans 10:13).

C. Call upon His name, Confess with your heart and with your lips that Jesus is your Lord and Savior.

. . . “That if thou shalt confess with thy mouth the Lord Jesus, and shalt believe in thine heart that God hath raised him from the dead, thou shalt be saved. For with the heart man believeth unto righteousness; and with the mouth confession is made unto salvation.” (Romans 10:9-10).

. . . “If we say that we have no sin, we deceive ourselves, and the truth is not in us. If we confess our sins, he is faithful and just to forgive us our sins, and to cleanse us from all unrighteousness. If we say that we have not sinned, we make him a liar, and his word is not in us.” (John 1:8-10).

. . . “And he is the propitiation for our sins: and not for ours only, but also for the sins of the whole world. (John 2:2).

. . . “In this was manifested the love of god toward us, because that God sent his only begotten Son into the world, that we might live through him. And we have seen and do testify that the Father sent the Son to be the Saviour of the world. Whosoever shall confess that Jesus is the Son of God, God dwelleth in him, and he in God.” (1 John 4:9, 14-15).

. . . “But God commendeth his love toward us, in that, while we were yet sinners, Christ died for us. Much more then, being now justified by his blood, we shall be saved from wrath through him. For if, when we were enemies, we were reconciled to God by the death of his Son, much more, being reconciled, we shall be saved by his life.” (Romans 5:8-10).

. . . “For the wages of sin is death; but the gift of God is eternal life through Jesus Christ our Lord.” (Romans 6:23).

. . . “Jesus saith unto them, I am the way, the truth, and the life, no man cometh unto the Father, but by me.” (John 14:6).

. . . “For I am not ashamed of the gospel of Christ: for it is the power of God unto salvation to everyone that believeth.” (Romans 1:16).

. . . “Neither is there salvation in any other: for there is none other name under heaven given among men, whereby we must be saved.” (Acts: 4:12).

. . . “Who will have all men to be saved, and to come unto the knowledge of the truth for there is one God, and one mediator between God and men, the man Christ Jesus.” (1 Timothy 2:4-6).

. . . “For God did not appoint us to suffer wrath but to receive salvation through our Lord Jesus Christ.” (1 Thessalonians 5:9).

. . . “But as many as received him, to them gave the power to become the sons of God, even to them that believe on his name.” (John 1:12).

True Church / Bride of Christ Spared from God’s Wrath:

 Romans 5:8-10. “But God commendeth his love toward us, in that, while we were yet sinners, Christ died for us. Much more then, being now justified by his blood, we shall be saved from wrath through him. For if, when we were enemies, we were reconciled to God by the death of his Son, much more, being reconciled, we shall be saved by his life.”

Romans 12:19. Dearly beloved, avenge not yourselves, but rather give place unto wrath: for it is written, Vengeance is mine; I will repay, saith the Lord.

1 Thessalonians 1:10. And to wait for his Son from heaven, whom he raised from the dead, even Jesus, which delivered us from the wrath to come.

1 Thessalonians 5:9. For God hath not appointed us to wrath, but to obtain salvation by our Lord Jesus Christ,

Romans 8:35. Who shall separate us from the love of Christ? shall tribulation, or distress, or persecution, or famine, or nakedness, or peril, or sword?

Jeremiah 30:7. Alas! for that day is great, so that none is like it: it is even the time of Jacob’s trouble, but he shall be saved out of it.

Revelation 3:10 Because thou hast kept the word of my patience, I also will keep thee from the hour of temptation, which shall come upon all the world, to try them that dwell upon the earth.