And as far as I know this Fed policy isn’t to buy failing stock it’s to inject cash overall through treasury bonds, since the Fed isn’t allowed to buy stock.
The purpose of the Fed policy is to make coporate bonds (and other lending/borrowing) more attractive.
1. Nobody would buy them.
2. Small biz doesn't have access to corporate paper markets, even in the best of times.
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.
Sure they would. If you price it correctly.
>> 2. Small biz doesn't have access to corporate paper markets, even in the best of times.
Not true. I am a SMB owner and have secured a LOC for my business as well as refinancing of my house personally. It's out there. Just at prices you might not like. But then again, we aren't guaranteed good prices. Or at least, we shouldn't be.
Here it looks like they are going down:
https://www.treasury.gov/resource-center/data-chart-center/i...
It wouldn't surprise me if the 80 year bond bubble popped this year, but I don't see that happening yet.
Have you looked at BBB bonds? A lot of companies have been downgraded because the conditions have changed so dramatically, driving yields up as well.
If we're gonna have socialism, let's have socialism for the poor and capitalism for the rich and not the other way around.
