Regardless of what the Fed may do to increase liquidity, it cannot solve the problem of solvency. Funds can be made available to banks, but if borrowers cannot quality, credit will not be available. Buying corporate debt may increase market liquidity and allow for greater debt issuance, but that may not solve the problem of basic cash flow.
The cost of bankruptcies and constrained credit will strain the economy and pull households and business away from reaching normalcy.
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