by Wolf Richter
Stimulus and bailouts had a huge impact, for those that got them, and for those that didn’t.
In the world of struggling businesses, debt defaults, bankruptcies, and closures, there is now a clear dividing line.
On one side are those businesses that got bailed out by the government, whether they needed it or not, such as the $25 billion in grants and loans for a handful of airlines, or the $525 billion in PPP loans handed to 5.2 million business entities, from minuscule to large, and some fraudulent. On the same side are businesses with access to the capital markets that got bailed out by the Fed whose corporate bond buying programs drove credit markets into frenzy, eager to fund nearly anything.