Just to be clear, this means that the Fed is going to conjure money out of thin air, and then use that new money to buy ETFs.
But not just any ETF. The Fed is specifically targeting ETFs that own corporate bonds.
https://www.sovereignman.com/trends/infinite-money-printing-fed-now-buying-etfs-27769/
remember this?:
https://en.wikipedia.org/wiki/2012%E2%80%9313_Cypriot_financial_crisis
Anyone with over $100,000 in an account had something like 10% taken out.
From Reuters...
QuoteDepositors in two Cypriot banks lost billions when savings were confiscated to protect the island's banking system in 2013, in a process known as a bail-in. ... Bank of Cyprus clients saw a percentage of their deposits exceeding 100,000 euros converted to equity, exchanging the seized funds for shares in the lender.
Referred to as "haircut" over here and much, much worse than 10%.
Laiki Bank customers lost 100% of anything over 100,000, about 3.4 billion all told. Bank of Cyprus customers (the largest) lost 47% of everything over 100,000.
In theory the funds stolen were converted in to shares, but with a much lower value than the cash. I don't think anybody has had a single euro back since though.
I personally know a guy who lost 5 million, one who lost 2 million and a friend of a friend who lost 50 million.
It may come as no surprise but nobody keeps any money in the banks here.
Added
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This worth a read if only for the line;
"Let's be honest about it, if you're clever enough to make a billion or two, clever enough to get it out of Russia, you're not then going to lend it to the Greek Government, are you?"
https://www.forbes.com/sites/timworstall/2013/03/31/theres-something-very-strange-about-the-cyprus-bank-haircut-very-strange-indeed
QuoteI personally know a guy who lost 5 million, one who lost 2 million and a friend of a friend who lost 50 million.
Ouch.... I never realised it was that bad.
Its amazing how outside Cyprus that is so easily forgotten.
ETF's have had a bad rep for ages, and the Fed has printed money for ages too!
'Finanacial instruments' they call them in the UK, a broad term for a multitude of ways for the banks to royally make love to us all.