#ButTheDip
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t0ussaint.bsky.social
i dont think we are going to see a 35%+ #AI mrkt crash, it might not be possible. The 1st backstop is billions in weekly mandatory buying from 401k's. 2nd is #ButTheDip ppl, these 'retail' buyers have become ~38% of the market & then we have the #TooBigToFailure Fed/Congress with the printing press
The Fed set up a series of emergency facilities in response to COVID-19 to expand its lender of last resort role to other sectors of the economy. The Fed created facilities to assist commercial paper markets, corporate bond markets, money market mutual funds, primary dealers, asset-backed securities, states and municipalities, and a Main Street Lending Program for mid-size businesses and nonprofits. It also created a facility to make funds available for lenders to make loans to small businesses through the Paycheck Protection Program (another CARES Act program). The Fed charged interest and fees to use these facilities that may increase its net income, but the facilities expose taxpayers to the risk of losses if borrowers default or securities fall in value. Assistance outstanding under these facilities peaked at nearly $200 billion in April 2020 but hovered around $100 billion for the rest of the year. Treasury pledged $215 billion to backstop potential losses on these facilities. The Fed can ease overall liquidity conditions by entering into repurchase agreements (repos), which are economically equivalent to short-term collateralized loans. In response to the crisis, the Fed has made $1 trillion in overnight repos available at auction every day and has made an additional $500 billion in longer-term repos available at least once a week. Actual take-up rates, however, were much lower and have been zero since June 2020.
October 30, 2025 at 12:19 AM