Is the Fed morally responsible for the stock market?

[brokerboy]

where you going with this exactly?

to me the economy is smoked and the fed is playing a long term dangerous game. i do feel it would of been a lot worse without their actions too so i understand why they tried it. i question will we be better off 10 years from now if they stopped everything now instead of continuing an action that is not working like they wanted. you have to see at some point your wrong and when inflation comes it might come very hard or it can be anything not just inflation. the fed has become a hedge fund ran by people who would blow up there own accounts if they were traders.

Quote from GVglobal limited:

At crisis times or times when the economy is about to see the recession, FED compels the citizens with their pressurizing economic policies, to indirectly buy the government bonds. May take up the revenue with this kind of policy but long run again the situation comes but with more difficult to handle as happened now for US like all the shut downs and inclined unemployment rates.

 

[tradingjournals]

Quote from bashatrader:

I don't think anyone is forcing anybody to invest in risky securities. The 1980s was worse with junk bonds and then no Fed QE. The FED is just doing its job to keep unemployment from rising. It's the mandate they are interested in and stock market rise is a secondary effect.

Policies have consequences which can be investing in risky securities, just like when there was the real estate rise (it was a rational consequence of the decision taken back then).

As for the unemployment why not save the money, and direct it to the creation of actual businesses. Here is an example: government could give land on say 99-year lease (free rent to low rent to remove advantage of other parts of the world) and share in the ownership of companies. You would have jobs, and new companies which could later be sold for a profit. You would have created jobs and wealth, with no money going to free puts.

I was surprised that the opportunity of appointing a new Fed chair was not taken to appoint someone from business or someone who saw the problem before it happened and had the solutions.

Not that the definition of business does not include someone like Romney. He was just a trader/investor, not a businessman.

 

[Sergio77]

FED is doing a good job said 80% of economists surveyed. The only ones who are angry about the stock rally are the permabears

 

[brokerboy]

after the stock markets being up what are they doing that's good? its even looking like unemployment rates were not helped much with the government playing with the numbers.

are we better today than if we did nothing? yes. are we going to be better 10 or 15years from now? probably not

Quote from Sergio77:

FED is doing a good job said 80% of economists surveyed. The only ones who are angry about the stock rally are the permabears