Quite true. To avert a cascade of defaults, panic, and then market collapse, the Fed has to buy widely. Distortions of price are a lesser evil than losing market function entirely and suspending the ability of credit worthy cities and states to finance their capital needs and of bond holders to sell to willing buyers.
Sorry. If the system can’t withstand junk debt defaulting, then the system sucks. There has to be at least some heavy regulation on debt issuance if this is the game now. Maybe ban stock buybacks for junk rated corporations?
“suspending the ability of credit worthy cities..”
Credit worthy like Chicago and Detroit?
L