…it manages the stock market now. Playing a game by making money available at super low rates continues the Fed role in boosting the stock market. It is criminal how the Fed is colluding with investment banking plus the market to keep money flowing into stocks instead of other investments.
From the Plunge Protection Team to interest rate manipulation to dollar redemption, the Fed is doing whatever it takes to keep the US stock market afloat. We don’t know why. Probably never will but there will come a time when no one will care that the Fed is doing anything at all. Then we will all suffer.
There are many people talking about the coming world depression cycle. It will not be pleasant. One cannot have low growth in the economy and a growing Dow Jones without a large correction. Part of this game is to say “What else are you going to invest your money in to make more money? Gold? Ha, the methods to reduce the price of gold and silver from their highs have been very successful. It is down almost a third now. Oil? Ha! The frack oil from the Central Plains will be driving the price of a barrel of oil even lower than the hybrid auto industry has driven it down. If it weren’t for the minor inflation of the dollar, oil would be less today than ten years ago. In Business? Ha. Investments mean buying brick and mortar and machinery. You won’t find a safe haven for cash in those area in America. Buy stocks, sit on your butt and watch them grow. As long as the Fed can get away with it, the stock market will prosper and become increasingly disconnected from the worth of some companies.
So the Fed will continue to pump money into the world but not into anyone’s economy. The cash will be held by banks and others. The market will rise until someone says “ENOUGH”!