3 ms·

Please show me a single time in history when the Fed has implemented a fiscal stimulus. I'll wait. I, personally, believe we need a stimulus for working famili

Please show me a single time in history when the Fed has implemented a fiscal stimulus. I'll wait. I, personally, believe we need a stimulus for working families, and that we should significantly increase taxes on capital owners, etc. If you believe in that too, then you should be directing your energy towards getting the government to pass a stimulus, not towards trying to get the Fed to do it (they can't). BTW, even in a socialist utopia, presuming that there are still markets and currency, we will probably still need an independent central bank.

throwlaplace 7y ago
>Please show me a single time in history when the Fed has implemented a fiscal stimulus. I'll wait. please show me a single time in history that the Fed has leant directly to businesses, states, and local governments; from the article >and reached into unchartered territory to support American businesses, states and local governments. so hmmmmmmmmmmmmmmm
pjmorris 7y ago
My theory for Fed fiscal stimulus: In 2008, the Fed started buying things that weren't treasuries (e.g. Mortgage Backed Securities (MBS)), and bulking its balance sheet up from ~800 Billion to ~4 Trillion. Some portion of that ~3 Trillion went to buying securities for which there was no other market at the going price. The difference between the market price (what a non-Fed buyer would pay) and what the Fed paid was stimulus to the firms selling the securities. They could turn around and spend that difference in to the economy.