Wall Street Journal question
The fed is making the financial market better by making it able to use financial assets as
opposed to having to use real assets. This makes it easier for companies to gain capital
because they can now use their financial leverage as capital. In the past they had to have
real assets to invest but now with the use of stocks and bonds they don’t physically need to
possess the capital. This will also make the stocks and bonds more appealing because they
are more liquid.
The article helps to understand the demand and need for stocks and bonds. They article
show how they have made it easier for business to expand which helps drive the economy.
Also shows how the fed the banks and the economy are all link together.