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Is the United States Government, particularly the Federal Reserve reducing profits to Bonds and Bond funds?

By offering bailouts to Investment Houses, Mortgage Companies and corporations in trouble, so that they do not have to convert convertible bonds for at least 6 months? Meanwhile, these corporations can invest their borrowed money in the stock market and deriviatives, bouncing stocks, to achieve higher profits at the expense of inflation from the bidding up of commodities?

Public Comments

1. You kind of went all over the place with this question.... Believe me, the firms who are getting funding from the Fed are not going to be playing the stock market, and derivatives are what got them in the mess they're in now. They are using the funds to carry out their day-to-day operations (it takes a lot money to make a lot of money) They're offering the convertible feature on their debt offerings so they hopefully wont have to pay the exuberant interest rates they are having to offer, to reward people for the risk they are taking. TMA is issuing convertible bonds paying 18%. If anything the bailouts are helping the bonds and bond funds, and commodities have experienced a bull market for the past 10 yrs - I think we might be seeing the tail end of it, but then again they typically have very long cycles.
2. Indeed bond interest rates are dropping because of the Fed's action. They really don't give a damn about creditors. They are more worried about debtors because there are SO MANY of them in the U S. And most of them can't afford even the interest expense on their debts much less the principal, including I might add the U S government itself. Talk about conflict of interest. Sure! let's bail out all the over extended borrowers. We will just issue another $500 billion in bonds to China to pay for it. No problem. They have to buy the bonds because if they don't they won't be able to sell their crap to us. He He. Who is really taking advantage of whom?
3. You're worried about a few Billion to bail out an I-Bank when the country has a multi-trillion dollar deficit because of the war? That is amusing. When interest rates go down, the value of bonds go up. Since the Fed is lowering interest rates as they bail out the I-Banks, the value of bonds is increasing. Bond funds are doing just fine. I'm more worried about the equity funds. I'm not sure what point you are trying to make about convertible bonds. Waiting to convert is good for bondholders and bad for corporations -- so your conclusion seems completely wrong to me.