Fallen Angels, The Mass Downgrades Begin At Fitch Ratings! Mnuchin Doubles Interest On Relief Loans (Video)
Fallen Angels, The Mass Downgrades Begin At Fitch Ratings! Mnuchin Doubles Interest On Relief Loans Video by Silver Report
The mass downgrades at Fitch ratings have begun as 11 retailers have become fallen angels. Fitch was warning that this decline in demand has the potential to take down even the strongest retailers. The potential for fallen angels was elaborated on by the federal reserve just a couple months ago and we have been warning about the maturing corporate bond wall for over a year. Spending decisions have changed dramatically due to the increasing amount of uncertainty.
Mnuchin has doubled the interest rates on the small business “relief” loans to increase profitability for the big banks. Several large banks were complaining that they would not be making enough profit from enacting the stimulus package even though the Fed has been printing dollars to provide liquidity to these banks. The entire reason the fed has turned up their treasury purchases supposedly to create enough liquidity to facilitate these loans for small business relief. And the Government is backing these loans 100% and they will be forgiven if they are utilized for payroll and overhead.
The banks said the .5% was not enough profit for them so Mnuchin doubled the interest rates charged to small businesses to enrich the banks via the relief package. The interest rates paid by the banks are near zero since the Fed has recently cut interest rates to enable them to keep profits up in the face of declining economic activity. This is the price you pay when you put Goldman Sachs in charge.