Eventually, QE will be so large, the Federal Reserve will buy everything. Here's a classic example of the Fed setting the stage to be the holder of everything, in this case stocks, which must of course be preceded by becoming the lender of last resort (he who lends the money, calls the shots, ultimately collecting the collateral). So: 1) offer cheap credit to everyone, for everything (anything can be used as collateral) 2) to "strengthen the economy", possibly after "the worst of the Coronavirus pandemic" has passed, raise interest rates, thus eliminating liquidity 3) profit: aka, seize the collateral for the loans which can no longer be repaid (real estate, corporation, or as in this case, shares) A simple and dastardly plan comes together: Fed Launches Primary Dealer Credit Facility Which Will Accept Stocks As Collateral https://www.zerohedge.com/economics/fed-launches-primary-dealer-credit-facil... Earlier today, when discussing the launch of the "Lehman crisis playbook" in response to the Global Covid Crisis, we listed the alphabet soup of measures the Fed may launch which are a replica of the measures adopted in the aftermath of the Lehman collapse. These included the AMFL, the MMIFF, the TAF and last but not least, the PDCF, or Primary Dealer Credit Facility, which as Rabobank said "would provide overnight funding to primary dealers, similar to the way the discount window provides a backup source of funding for depository institutions." Just three hours later, at 6pm ET, the Fed, as expected, announced the establishment of a Primary Dealer Credit Facility (PDCF) "to support the credit needs of households and businesses." What the Fed really meant is that it is now launching a way for dealers to monetize the stocks they own, as the facility will be collateralized, among others, by "equity securities." https://www.federalreserve.gov/newsevents/pressreleases/monetary20200317b.ht... ... Aka, the Fed buys (literally) everything. What a world...