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Except it isn't really true. Much of the economic recovery post 2008 was fueled by the FED buying assets. They've been buying stocks and bonds to keep the price
by tachyonbeam 8y ago
Except it isn't really true. Much of the economic recovery post 2008 was fueled by the FED buying assets. They've been buying stocks and bonds to keep the prices rising. So the FED has been directly handing money to people who own stocks and bonds. We can argue as to whether this is better, worse or functionally equivalent to directly taking money from the middle class, but it isn't exactly the same thing.
I personally wish that instead of printing money to buy stocks and bonds, they had enacted something like UBI instead. Give the money you're printing to people who need it. I think it's actually better for a capitalist economy, because then corporations still need to compete to get that money from consumers, instead of just being bailed out, which rewards failing corporations.
- harryh 8y agoThe FED hasn't been buying stocks. That is wrong. The FED's assets are nearly all in US Gov't Treasury Bond's & Mortgage backed securities. https://www.federalreserve.gov/monetarypolicy/files/quarterly_balance_sheet_developments_report_201711.pdf https://www.federalreserve.gov/monetarypolicy/files/quarterl... Your policy preference completely misunderstands the role of the FED in the economy. Any proposal in that area would have to be run by the Federal Government, not the FED Bank.