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Comment by wazoox | Hacker News Reader

The FED is buying out every asset in existence, that means that there aren't any markets, any prices, everything is state-owned and the economy is entirely socialized, and it's now the "USSA". Stock markets are surfing the wave to grab as much as possible before the inevitable crash and collapse.

No wonder the IMF head said we need a "Great Reset". This can't end well...

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You realize the Fed isn't controlled by the government, right? Some of the leaders are selected, but the decisions CAN (not necessarily are) made without consultation of any of the branches of government. Besides the oversight of the leadership, there is no power granted to the branches of government into the Fed's decisions.

> You realize the Fed isn't controlled by the government, right?

Wrong. The Fed is part of the government; it's just a part that's not described anywhere in the Constitution. But we've long since given up on the idea that the government should be limited to what's actually described in the Constitution.

Unfortunately not 100% true, especially after the CARES act.

Under the CARES Act, there is a huge chunk of money that the Treasury is obligated to back into Fed assets. Specifically "investments in programs or facilities established by" the Fed.

So on one hand, the Treasury is obligated to invest (buy) assets from the Fed. The Fed has some leeway in what it sets up, but the bill also states that the Treasury can attach “such terms and conditions . . . as the Secretary determines appropriate.” So, in essence, the Secretary of the Treasury gets final say in what the Fed sets up.

Therefore, what is actually going on is the Treasury can say "Fed, go buy up assets X" and then hands them the money from the CARES Act to do so. Or, in other words, now the Fed is acting as a banking institution for the Treasury.

https://www.brookings.edu/research/explaining-the-new-fed-tr...

Yup, it never ends well, and more and more people incentivized to tell one otherwise right up until that moment lol

The Fed bailing out corporations isn’t socialism. It’s the state working to preserve capitalism and preserve the status quo in which corporations run things. Watch, by the end of this pandemic large corporations will have come out ahead (since smaller businesses won’t be bailed out by the Fed). This is nothing like the USSR. Do you really think the Fed is going to ban private enterprise and not just hand all the assets right back to the failed capitalist institutions they bailed out?

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