4 ms·
Not really. It means that federal government is backstopping certain types of debt. This ensures that market liquidity happens such that mid-tier companies with
by cik 6y ago
Not really. It means that federal government is backstopping certain types of debt. This ensures that market liquidity happens such that mid-tier companies without ease of access to capital can access capital at lower interest rates.
With the fed backstopping debt, they're effectively the debtholder for these smaller companies - so yet it's a bailout. However, unlike when the fed took actual stakes in GM and Chrysler they don't hold shares. They merely receive the interest payments and coupons on the associated debt.
It's pretty hard to argue that there's EVER been market based capitalism. Much like communism, it's a bogey that has never actually existing - instead we have systems similar to them.
- redis_mlc 6y agoThe above is a very good answer. > the US, which is supposed to be a very capitalistic nation 1) large corporations write laws and engage in monopolies to prevent competition. They have no desire for any sort of capitalism as the average person would think of. This is crony capitalism. 2) corona is destroying the capital that smaller companies had to engage in authentic competition. This is the problem we really need to address in May, 2020 before we flush 200 years of progress down the toilet. (When you see articles about billionaire investors crying in public this month, this is why. They look at the economic numbers and know what our country is throwing away over the flu.)
- OrangeMango 6y ago> It's pretty hard to argue that there's EVER been market based capitalism In the United States? No, Article 1 of the Constitution makes it clear that we don't do pure capitalism here.