Thread by @gbponz

THREAD: in fact, one of the worst aspects of #QE is that, by carrying a huge size bias, it is the ultimate anticompetition clause: only the big can access money.(/) @Halsrethink @nglinsman @bondstrategist @DiMartinoBooth @dlacalle_IA @amlivemon @DavidBCollum

https://twitter.com/ektrit/status/1372529085251993602

If you are an established company with a medium to big balance sheet, you not only can afford the paperwork (internal ratings, anyone?), but YOUR risk premium is compressed by Central Banks.(/)

Meanwhile, smaller companies and prospective new entrants cannot and will not find funding, since at that earlier stage there is a level of "funding cost incompressibility" given the risks involved.(/)

That helps the big guys and wrongs the small guys... on top of other quirks. For example, in a small business, like a store, the owner works there on top of putting in some capital, but he's not an employee: so he is not covered by the support schemes prevalent now.(/)

in theory he should be covered for the income loss, but #Italy is a testament of how tragically different the two treatments are. Some companies are advancing PUBLIC support to their employees, while receiving next to zilch. (/)

Also, taking into account the Italian government tendency to grant "fiscal credits" instead of actual money, shrewd and sad operators are foreseeing a future where that money will NOT enter the company coffers but be defrayed against the tax increases to come.(/)

So yes, Kris is right in pointing this out, and if this goes on further, there are a number of distortions to come, hence my queasiness about believing whatever growth forecast for 2021-2022 comes out. I do not know, and I doubt other do.