"The Federal Reserve is expanding its foray into corporate credit to now buy individual corporate bonds, on top of the exchange-traded funds it already is purchasing, the central bank announced Monday."Here's Artemis Capital's CIO Christopher Cole on moral hazard:
"Imagine if the Fed (via tax-payer funded Treasury SPV) back-stopped the debt of Enron and Worldcom back in the early-2000s?
Both of these companies were "fallen angels" that employed a lot of people."Everyone loves a buoyant market. Thing is, in the long run it matters how we get there...
Trader/CNBC commentator Jim Iuorio agrees:
"There is nothing good about the Fed buying corporate bonds. This is a wild overreach and dramatically increases the likelihood of this ending in terrible tears..this is no joke.."