The author begins with a review of Federn's contributions to psychoanalytic theory, which he feels are not given appropriate attention today. Particularly noted are Federn's formulations of ego cathexis, ego feelings, and ego boundaries. For example, Federn asserted that the ego boundary contracts in psychosis so that thoughts and feelings previously perceived as one's own fall outside the ego boundary. The latter sections of the paper attempt a synthesis of object relations with economic issues. Neutralized energy becomes available when the infant accomplishes separation from the mother-infant symbiosis, mourns appropriately, and then reintrojects the mother as a whole object. Neutralized energy is used for ego cathexis, which protects the integrity of the ego boundaries.