The Fed Is Throwing Money Around. Not Everyone Is Reaping The Benefits
Companies can borrow money from the Federal Reserve under its new lending programs. It's been good for the stock market, but the central bank's effort to help the economy has had lopsided results.
After the coronavirus lockdowns forced it to shut down its 345 U.S. theaters, Texas-based Cinemark in April decided to do what a lot of companies have done: borrow money by selling bonds.
What made the move especially attractive was that the bonds were implicitly backed by the Federal Reserve, which is lending out trillions of dollars
