We have talked a lot about the epic battle between monetary and fiscal stimulus vs. economic and EPS weakness, and right now the stimulus is winning. The announcement last evening that the Fed is expanding the scope and duration of its muni bond program is exactly why we called the Fed’s April 9 $2T stimulus package game changing. It wasn’t the amount of money that was important (although that is incredible), it was the fact that as soon as the Fed saw an area of stress, it attacked it with an incredible amount of money. It was at that moment we took the worst-case scenario off the table because it is clear the Fed and Congress are just going to keep providing money until it works.




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