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Front page article of WSJ today (may 11th). Title of article is "Big Investment Firms Take Lead in Stimulus Program" if you want to try to find it online.

The Fed says the weather is nice, they want to go fishing, prepare for 3-day memorial day cook-outs (while many who served will be working on Memorial Day, as they did on Veterans' Day, at Walmart and other places, and get to have a piece of cake at coffee break, and have the privilege of paying some small part of their wages in taxes to support a paid day off for federal employees), and other warm weather activities.

Sorry for the digression, back to the article.

So they tossed the checkbook to Blackrock and Pimco to pick the billions of dollars of bonds to buy. Both Pimco and Blackrock happen to have interests in many of the companies and funds they'll be looking at.

A quote from the article:
" 'If you're an asset manager working for the Fed, your own funds should be excluded from the purchases,' said Nouriel Roubini, an economics professor at the New York University's Stern School of Business and chief executive of Roubini Macro Associates.
During a call with analysts April 16, BlackRocks's Mr. Fink (BlackRock CEO) bristled at the suggestion the Fed mandate was a bailout for the ETF industry, or his firm.
'I think its insulting,' he said. 'What we're doing with governments is based on great practices.'"

Later in the article, it says the central bank has said BlackRock will assess its own ETFs on equal footing with those of competitors. Oh, good, what a relief, I feel so much better.
When this news was breaking, investors were jumping into ETF's raising the share price of some of them above the value of the portfolio.
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