Fed’s Balance Sheet Exceeds $7T for First Time in History

Re:Fed’s Balance Sheet Exceeds $7T for First Time in History by megaman821 on Friday May 22, 2020 @02:24PM (#23275268)

I don't think anything makes these businesses inefficient, just unlucky that they are disproportionately affected by shelter-in-place orders. Since the state is basically shutting down the business for the good of the populace, it seems more analogous to eminent domain. The government has taken something of value (the ability to have their business open) and should compensate these businesses partially for their losses.

[ Parent | on HN ]

Re:Fed’s Balance Sheet Exceeds $7T for First Time in History by 205guy on Friday May 22, 2020 @04:14PM (#23276429)

This is my view as well. The government (fed and states) hit the big pause button on the economy for public safety. They then help out the people and the corporations get through it with unemployment checks and loans to businesses so that the intangible value (relationships and expertise) is not lost.

I generally agree that we should guard against privatizing profit and socializing losses, but I don't think it applies here. The point is to get all businesses and people back to the point they were before.

[ Parent | on HN ]

Re:Fed’s Balance Sheet Exceeds $7T for First Time in History by economicslol on Friday May 22, 2020 @02:32PM (#23275361)

So the capitalists that get massively rewarded for taking risks now get bailed out when those risks turned out bad? Sounds like BS to me.

[ Parent | on HN ]