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Strategies & Market Trends : The coming US dollar crisis
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To: Real Man who wrote (57052)2/17/2015 10:15:16 AM
From: Tommaso  Read Replies (2) of 71402
 
While I do not believe that the Fed buys stocks or supports stock markets directly, it does seem to use stock market levels both as a measure of what needs to be done and as a measure of its success in managing the economy. I wonder if this is a consequence of Bernanke's status as an historian of the Great Depression, the onset of which was signaled by the great stock crash of 1929. Of course, debate over whether or to what extent the 1929 crash helped cause the Depression continues. But in historical memory it is certainly associated with it.

So if you prevent a market crash, you prevent a depression.

Analogies are always misleading, but this is like thinking that if you cover the termite damage to your house with enough duct tape, all is well.
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