Absolutely unreal. Either things are worse than people are letting on, the Fed is simply refusing to let the market drop any further due to optics, or both.<p>I hope anybody who is bearish on stocks has closed out any short positions because at this point, I can't see how stocks will be allowed to go down.
As others have mentioned, this suggests there is large scale dilution of currency happening. When people realize that, it can be extremely destabilizing. We are somewhat protected just because everyone else trades in Dollars and there’s good demand for it, but there’s a limit to how far that goes. At some point, sentiment catches up to fundamentals.<p>Also isn’t this a sort of nationalization by financial instrument?
Is there a point at which the SEC could/might consider the Fed’s activities as market manipulation, or is that outside the scope of the SEC mandate?
Can anyone explain how this doesn’t lead to hyperinflation in the long run? The Fed is saying outright that they’ll continue to print more money whenever the stock market drops. At some stage that money will have to hit consumer prices, right?