IF the Federal Reserve keeps pumping in billions or trillions of............?

Question

tax payers dollars into the stock market to sure it up, could we tecknicly become a defacto COMMUNIST country because the poeople will own the majoritystock in big corporations?

Answer 1

No, because you don't have voting rights to the Fed. Therefore you don't have any ownership. Basically it means that the Fed owns America instead of America owning America.

Answer 2

No.

You're laboring under a number of misconceptions. The Fed is not pumping money into the stock market, at all. What it is doing, is re-purchasing Treasury Bonds from financial intitutions, to put more cash in thier hands, and thus keep interest rates at the targetted level.

This has the effect of keeping the credit market liquid, which means speculators and private equity firms can still borrow money with which to buy stocks, but they own those stocks, themselves, and owe the money to financial institutions, not the government.

Answer 3

The Federal Reserve does not buy stock in corporations. They buy securities in order to provide short-term loans to banks. The billions they put in have to be repaid on the order of days or weeks. The one last Friday was in fact a one business day loan and had to be paid back on Monday.

Answer 4

The Federal Reserve does not use tax payer dollars.

You might try some fresh air and sunlight to cure that paranoia a bit dude!

Answer 5

no the fed is privately owned..

http://video.google.com/videoplay?docid=-515319560256183936&q=the+money+masters&total=1254&start=0&num=10&so=0&type=search&plindex=0

Answer 6

You are so far off base with your questions it would take too long to enlighten you. Study basic economics.