Fed fires an even bigger bazooka, expands its shopping list to include junk bonds

[SWBTATTReg]

9. In a way they are supporting these failing businesses by providing a support level to their ...

failing bond prices (hence increasing the yields) and thus, allowing these failing companies to continue issuing worthless junk bonds e.g., 'hey, there is a market for our junk bonds' and will turn around and yet again, issue more junk bonds.

The Feds should not support investors and/or institutions that allowed these failing companies to issue junk bonds (that's why they call them 'junk bonds'). Let the free market handle them, otherwise what's going to happen is that their bad businesses models will be prolonged longer and cause more pain in the long run.

A big chunk of these bond underwriters are banking on the high interest rates that the junk bonds must pay to attract buyers, and thus are the ones really pushing for the sales of these garbage bonds. Of course the failing businesses still pay the same amount of interest payments but the value of the bonds are collapsing, causing yet more higher interest rates being paid on the bonds, and unsuspecting buyers, unaware of the bad business practices that caused the business to go under, are still there.