Fed-The endpoint for "Zombie Markets"

If "zombie markets" grow and become equal in size to the market driven portion of the economy, a hybrid model (mixed economy) of market and command (planned) economy will emerge and co-exist.

It is actually great for the stability of a nation and its economy as the command portion of the system can be a check and counter-balance to rein in the free-willing market portion before any misdeed as the free market has created and circulated products like the collateralized debt obligation (CDO) which destabilised the whole economy e.g. in the 2008 Global Financial Crisis and now there is the collateralized loan obligations (CLO). As long as, the person leading the command economy has the interest of the public and its wider stakeholders at heart.

The pros of mixed economies actually outweighs the cons of a less free market/economy:

• There is less government intervention than a command economy. This results in private businesses that can run more efficiently and remove the bureaucracy that a government entity has internally through corporatisation of some functions into zombies.
• The government can intervene to correct market failures in a timely fashion through the command portion. For example, most governments will come in and challenge/introduce competition to large companies if they become a monopoly in the free economy or nationalise critical industries from economic failure.
• Governments can create safety net programs like healthcare or social security thus bring stability to a nation.
• In a mixed economy, governments can use taxation policies to redistribute income and reduce inequality or through the command economy they control to generate the relevant income.

The zombies now control 2 millions jobs in the US and their failure will definitely trigger a systemic failure to the US financial system like a tsunami. Fed and the zombies' existence could also prop up laggard market as well. Many other successful economies around the world also have such a model in place.

Perhaps, the Fed is modern Robinhood in disguise and with a twist - engaging in a major social financial re-engineering where the rich will get richer with all these easy credit flying around while the average can make a living and continue their lives in peace and harmony thus co-exist on the land.

Derek is a contract consultant and average Singaporean based in Singapore. He is always looking for quality and relevant long term employment opportunities within the nation. He is sharing perspectives in his personal capacity in the hope that a layman's general perspective might spark off something brilliant. Hopefully, it will make the world a more peaceful and better home for all that resides in it.

Derek holds an MBA and BSc (Hons) in Business Computing (Business Management and Computing) awarded by The Bradford University,UK, Specialist Diploma in Operational Risk Management from The National University of Singapore (NUS) Risk Management Institute (RMI), Specialist Diploma in IT Security from The Nanyang Polytechnic, Singapore , Diploma in Mobile Wireless Computing from The Temasek Polytechnic, Singapore, and The Oxford Fintech Program Certificate from The Oxford University, UK