The state provided a price floor for all damaged financial assets

Evidence

“Shadow” or hidden bailouts were also pursued through the Federal Home Loan Bank system, stepping up Fannie and Freddie purchases, and unconventional expansion of the Fed balance sheet. In effect, the government acted to directly or indirectly provide a price floor for selected investors for all manner of financial assets, no matter how dubious or damaged. In a pinch, the central banks were brought in to do much the same thing under the euphemism of “quantitative easing.” — Philip Mirowski, Never Let a Serious Crisis Go to Waste, 944

Categorization

• SEED: Essay angle: QE reframed — central-bank balance-sheet expansion as a covert price-support scheme for private asset holders, and how the euphemism launders the transfer.
• XREF: connects to: Financial crisis instruments circulated far above the value of their underlying assets — Max Haiven, Cultures of Financialization, 64

Broader Connections

• Financial crisis instruments circulated far above the value of their underlying assets #contradicts (0.80) — Max Haiven, Cultures of Financialization, 64