Socialism bailing out capitalism? (The Federal Reserve and the Banking problems)

One can argue it was the FED that created the problem in the first place.

The FED's policies played a large role in that behaviour by lowering rates.But I think many have a mistaken idea of what capitalism is. Capitalism is not anarchy, the absence of government. Regulations are therefore part of a capitalist system. Stated another way, government regulation is not the same as socialism.One could argue that by the government controlling or a gov appointed central bank controlling the money supply, that in that sector alone, the control and issuance of money, we have adopted a socialist system, but that's pushing it to say so, imo. Capitalism does not negate the government's role completely.

The FED is actually not the government per se. It's a privately owned central bank. The government does play a role in appointing chairman and directors.

It's Board is governed by political appointees, but at the same time, those appointees have tremendous power and can affect a president's political viability in a major way if they so desire. Moreover, despite the so-called low rate of return, the members meake a ton of money via easy credit.

Not sure what you mean here......certainly I don't think there is really a "low" rate of return. 6% on money created out of thin air is not really poor. Plus, they get free money essentially.Edited by randman, : No reason given.

It's called something like the fractional reserve banking system....plus, the FED can print as much money as they want and lend it to banks at whatever rates they want. That's money out of thin air, or minus the cost of printing and I think the Treasury picks up the tab for that anyway.