3 ms·
Wouldn't this force the fed to become the lender to these zombie firms or let the institutions take a bath? I can't imagine corporate bankruptcies resulting in
by lumost 6y ago
Wouldn't this force the fed to become the lender to these zombie firms or let the institutions take a bath?
I can't imagine corporate bankruptcies resulting in corrective change if the fed is the principal lender.
- nabla9 6y agoFed already opened corporate bond-buying program and used it. It's called Secondary Market Corporate Credit Facility (SMCCF). It only applies to investment-grade debt. Going below that and buying junk would be a big step.