07-16-2017, 04:02 PM
The Fed's intervention has been quite effective in preventing a full return of real estate values to their long term values. I'm not saying they'll purposely do that with stocks, but when you can print arbitary amounts of money, you can inflate money valued prices arbitrarily.
Of course it has undesirable side effects, such as the stock market bubble that has accompanied the prevention of further collapse of the housing bubble, so it's better to avoid it if possible.
Of course it has undesirable side effects, such as the stock market bubble that has accompanied the prevention of further collapse of the housing bubble, so it's better to avoid it if possible.