An opinion piece on MarketWatch by Jared Dillian points at the Fed's failure to capitalism. Dillian argues the Fed's has gone too far with the corporate bond buying program.
I think that his article makes a great point and adds to the 'too big to fail' argument. Companies should be allowed to fail. Money should be able to move to the better and/or new companies when these larger companies have earned themselves bankruptcy. The Fed may be fighting the effects of a pandemic but the companies that are on the edge of failure were not prepared for such a downturn in the midst of a strong company.These are bad companies, and the longer they stay around, the more capital gets misallocated. We should want that capital to be allocated to better uses.
Good read: The Federal Reserve won’t allow companies to fail, and that weakens the U.S.
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