It wont, they just showed that they rather let the system explode than implode; the balance, proper self-organization, invisible hand etc, was lost ten years ago
Sure. The point is that a gardener can not force plants to grow, neither can he create them by himself; only assist in the proper conditions for growth. There is such a thing as too much water and fertilizer which is more problematic than none at all
Sadly, I believe you're right, and this scares the shit out of me. To put it bluntly - we will not have capitalism any more. Capitalism must provision for and handle failures, and this is not currently allowed to happen.
Everything the Fed, the BOJ, the ECB, the SNB and what have you are doing, reducing all the rates that they can:
- starting from short riskfree rates [all since 1981, but problems surfaced only in 2008]
- to long riskfree rates [all since 2008]
- to corporate default rates [ECB since 2012, the Fed since 2020]
- and in some cases, even to equity risk premium rates [BOJ and SNB since 2008]
Also China, but China is special, and has a much more fine grip on things that goes far beyond the general rates (they can target sectors specifically, or even individual companies).
Expect more alphabet soup of pump facilities to materialize. I don't bother listing them here, it's all the same (reduce this or that rate).
Yes, but it all started in 2008 (to me, the starting point was really the 1998 government bailout of a private business - a hedge fund LTCM [1]). It was all downhill from there.
Still, not "since forever", only since 1998, or so.
the example I was directly thinking of was Italy's IRI from 1933[0] which was a conglomerate directly aimed at restructuring failing public companies through nationalization, it kept doing it for decades. AFAIK other countries had similar national behemoths.
The US set up the Home Owners' Loan Corporation[1] during the great depression to refinance loans saving a lot of banks from disaster (tho helping common folks too), and there were also the savings and loan bailout in the '80s and '90s[2]. Chrysler was bailed out in 1979[3] and Lockheed in 1971.