> When you bail out irresponsibly over-leveraged and nearly bankrupted banks and corporations, and pay for those bailouts with tax-payer money, you steal from the poor and give to the rich.
Or, you know, the Fed is not authorized to deal directly with individuals via the Federal Reserve Act. The Fed's job is monetary and financial stability through credit markets. That's the tools that it has, and it uses them when needed.
If you want to help individuals through taxes/redistribution, social programs, etc, then that's government spending which is controlled by Congress.
It's not the Fed's fault that politicians in the House of Representatives and/or Senate do not wish to pass legislation that authorizes these types of things.
> Or, you know, the Fed is not authorized to deal directly with individuals via the Federal Reserve Act. The Fed's job is monetary and financial stability through credit markets. That's the tools that it has, and it uses them when needed.
Is this really true anymore? At least the past year, the Fed has taken an unprecedented powers to counter the effects of the pandemic. We've all heard of quantitative easing but there's a handful of programs such as SMCCF that allows the Fed to buy debt directly from large corporations.
Corporations aren't people but they're owned by shareholders and controlled largely by the 1%. The amount of money the Fed has directly or indirectly injected into global economy is absurd and surely, if there's a reckoning, the blunt will be taken on by the bottom 90%.
> We've all heard of quantitative easing but there's a handful of programs such as SMCCF that allows the Fed to buy debt directly from large corporations.
I agree that this was questionable. The problem is that elected politicians are becoming increasingly dependent on the Fed to solve mistakes that they caused themselves. It's like a morbidly obese patient giving a surgeon to permission to do more and more invasive surgery. The surgery itself will only ensure that their body will stabilize, but it's up to the patient to actually get healthier.
Or, you know, the Fed is not authorized to deal directly with individuals via the Federal Reserve Act. The Fed's job is monetary and financial stability through credit markets. That's the tools that it has, and it uses them when needed.
If you want to help individuals through taxes/redistribution, social programs, etc, then that's government spending which is controlled by Congress.
It's not the Fed's fault that politicians in the House of Representatives and/or Senate do not wish to pass legislation that authorizes these types of things.