Past Ideas From The Fed's to save the economy when in deep trouble

serf

 Now They are funding low interest loans to Corporations even now so why not just buy them out right? Ask Japan how that worked out for them. Helicopter money on steroids!

                serf

https://www.zerohedge.com/markets/remember-when-yellen-said-we-wont-see-another-crisis-our-lifetimes-well

And finally, remember just a month ago, Janet Yellen suggested that The Fed should buy stocks in the next crisis..

The Fed could ask Congress for the authority to buy limited amounts of investment-grade corporate debt. Most central banks already have this power, and the European Central Bank and the Bank of England regularly use it. The Fed’s intervention could help restart that part of the corporate debt market, which is under significant stress. Such a program would have to be carefully calibrated to minimize the credit risk taken by the Fed while still providing needed liquidity to an essential market.

So, do we go full-Einsteinian-madness - repeating the mistakes (that have not worked at all) of Japan and Europe and expect a different result... or is now the time to bite the bullet, embrace the creative destruction and prepare for a new world?

mark christian

Thinking back to the 2008 bailout, the government ended up buying risky and nonperforming debt like bad mortgages. I'm wondering if those debts were ever resolved or were simply written off?  

serf

 I think Tarp turned a profit on paper.

                  serf

               https://en.wikipedia.org/wiki/Troubled_Asset_Relief_Program

   

  On December 19, 2014, the U.S. Trhttps://en.wikipedia.org/wiki/Troubled_Asset_Relief_Programeasury sold its remaining holdings of Ally Financial, essentially ending the program. TARP recovered funds totalling $441.7 billion from $426.4 billion invested, earning a $15.3 billion profit or an annualized rate of return of 0.6% and perhaps a loss when adjusted for inflation.[2]