The Fed Helped Companies Borrow Money. Some Laid Off Thousands Anyway
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. The sale was made easier by the fact that the Federal Reserve was lending out trillions of dollars to businesses and governments, providing a much-needed boost to the corporate debt market in an effort to prop up the economy. Even as it was borrowing money, Cinemark also announced a number of steps "to endure a prolonged period of no revenue." They included laying off 17,500 workers with no guarantee when they'll be rehired. During the current crisis, the Fed, which began a two-day meeting on Tuesday, has pulled out all the stops to keep the economy afloat, lowering interest rates to zero and starting a series of unprecedented and historic new lending facilities practically overnight. "It has taken what were already extraordinary, exceptional, unusual, unconventional tools and has expanded them even