"Well, those with long memories will remember that the Fed said for years that it would "unwind" all its asset purchases and remove all that money it created from the real economy. But now it's pretty clear that's not going to happen for a few reasons:
1. These assets—such as old mortgage-based assets and other garbage from the last housing bubble—never recovered enough value to be sold off by the Fed.
2. Because those old assets never recovered, the Fed doesn't want to sell them and thus put pressure on organizations—like banks—that still hold similar assets. In other words, if the Fed were to let those assets go, they'd likely pop various bubbles.
3. It's basically policy now that the Fed exists to bailout banks and the financial sector forever, no matter how much it costs other sectors of the economy.
4. This has massively inflated asset prices such as stocks and real estate. That's bad for affordability for regular people. But it's great for billionaires.
So, this is just the latest continuation of that policy. It's more bailing out of banks and hedge funds at the expense of those who hold dollars or compete for resources with the bailout firms and industries. By constantly favoring and bailing out bankers and other parts of the financial sector, the Fed has put all other sectors and industries at a disadvantage. As a nonfinancial enterprise, it's hard to compete for investors and capital when the Fed has guaranteed that the financial sector will be bailed out no matter what."
https://mises.org/power-market/fed-announces-another-flood-easy-money
1. These assets—such as old mortgage-based assets and other garbage from the last housing bubble—never recovered enough value to be sold off by the Fed.
2. Because those old assets never recovered, the Fed doesn't want to sell them and thus put pressure on organizations—like banks—that still hold similar assets. In other words, if the Fed were to let those assets go, they'd likely pop various bubbles.
3. It's basically policy now that the Fed exists to bailout banks and the financial sector forever, no matter how much it costs other sectors of the economy.
4. This has massively inflated asset prices such as stocks and real estate. That's bad for affordability for regular people. But it's great for billionaires.
So, this is just the latest continuation of that policy. It's more bailing out of banks and hedge funds at the expense of those who hold dollars or compete for resources with the bailout firms and industries. By constantly favoring and bailing out bankers and other parts of the financial sector, the Fed has put all other sectors and industries at a disadvantage. As a nonfinancial enterprise, it's hard to compete for investors and capital when the Fed has guaranteed that the financial sector will be bailed out no matter what."
https://mises.org/power-market/fed-announces-another-flood-easy-money