The US stock market rallied last night because the Fed is buying individual bonds.
In effect, they are converting many businesses into state owned enterprises. It may not be fully state-owned, but the state may be holding a substantial stake.
This is an interesting phenomena. It is a modern way of nationalization. America is moving towards socialism.
I am in favor of state owned enterprises - provided that it is being run to reduce the cost of living.
However, it could be abused to benefit the corporate executives who enjoy insane remuneration packages.
It depends on the leadership of a country and the level of corruption.
America may turn out to be more corrupt than third world countries.
Alternatively, they may turn out to be a good model of government for state owned enterprises.
We have to see what happens in the future.
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