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How does the current Fed strategy help small business right now? If anything, it seems like this strategy will leave larger companies in a position to soak up t
by matthewdgreen 7y ago
How does the current Fed strategy help small business right now? If anything, it seems like this strategy will leave larger companies in a position to soak up those small businesses' market share when this is all over.
- Anon1096 7y agoThe Fed is set to announce small business loans very soon. This is just part of a larger plan.
- im3w1l 7y agoI'm really curious how startups are positioning themselves for the availability of such loans. Might the terms be so favorable that it drives out the VCs?
- thoughtstheseus 7y agoUnlikely. Even in these troubling times the fed likes to have assets backing loans. Maybe an SBA program could be competitive but not in the near term.
- dredmorbius 7y agoIndirectly, by avoiding a liquidity crunch. Specific direct aid is called fiscal policy, and would have to be enacted by Congress (or possibly to a limited extent by the executive): reduced taxes, direct payments or credits, loan guarantees, government spending, other economic policy. The Fed's tools are monetary policy, and manipulate the overall money supply. That's a powerful, but limited, power.