Purchases of uncollateralized debt, using 10-to-1 leverage beyond Congressionally allocated funds, and treating those uncollateralized bonds AS THEIR OWN COLLATERAL, reflects neither the “letter” nor the “spirit” of the law.

Purchases of uncollateralized debt, using 10-to-1 leverage beyond Congressionally allocated funds, and treating those uncollateralized bonds AS THEIR OWN COLLATERAL, reflects neither the "letter" nor the "spirit" of the law.@FederalReserve @ChrisVanHollen t.co/2RLow3Czz9

— John P. Hussman (@hussmanjp) May 19, 2020

The Fed is not saving the economy.
It’s ruining its long term growth prospects by zombifying companies & letting failing & highly levered business models drag on with no prospect of these ever turning a profit.
It’s a drag on innovation & reckless capital misallocation.

— Sven Henrich (@NorthmanTrader) May 20, 2020