Originally posted by Metal Brain
Why can't they just let stock prices be determined by common investors of the public? Do you think they cannot be trusted to determine if stocks are overvalued or undervalued?
What do you mean by "common investors of the public" -- do you just mean the private sector?
I just think this isn't an ethical issue, it is a "role of government" issue and the central bank as an institution that controls the money supply should be discussed in general terms first. I would have to see (and understand) how it works for example is it how GM was propped up in the recession?
"When the Treasury Department sold its last remaining shares in insurance giant AIG recently, it announced that it had earned a profit on the controversial bailout that began in 2008. That will not be the case for General Motors.
Treasury has finalized a plan to sell its remaining stake in the nation's biggest automaker over the next 15 months, beginning with GM buying back 200 million shares from the Treasury by the end of this year. That will leave the government holding about 19 percent of GM's shares, which it plans to sell throughout 2013 and perhaps into 2014."
http://www.usnews.com/news/blogs/rick-newman/2012/12/19/its-official-taxpayers-will-lose-big-on-the-gm-bailout
Edit, in accordance with the open market concept, I assume that others will be able to buy or sell GM stock at the same price (at whatever valuation the market determines) during this time.