the FED buying corporate debt does put a new face on things. they are now openly choosing economic winners and losers, pumping funds into failing businesses at their choosing when the free market would have let them go bankrupt. unlike treasury stimulus, there is no semblance of accountability or transparency. they are really fucking with the investment landscape.

in all fairness, the USA has never been a free market in the sense of laissez-faire economics. it's a "mixed economy" rife with regulations, subsidies, and welfare entitlements. https://en.wikipedia.org/wiki/Mixed_economy#Mix_of_free_markets_and_state_intervention

this takes it to a new level though.


there's essentially 2 schools of thought on this. the austrians and other austerity supporters think perpetual growth is a fairy tale and that the market should be left to its own devices even if that means a depression wiping out much of the economy.

the keynesians and other demand side economists see a depression as the ultimate evil, much worse than money printing and bailouts.