Did the Fed care when billions or trillions or whatever it was, were lost in the stock market? They lowered interest rates to stimulate the economy, but most American stock owners lost big time in stocks in 2000.
They’ve already said they don’t care about housing, and that history doesn’t look kindly upon people who don’t expect a risk premium.
I disagree with your assumption. The Fed looks out for the health of the economy, perhaps favoring businesses, but not John and Suzie Q Homeowner. Layoffs from manufacturing losses? Did the Fed jump in with fiscal policies, or Bush w/ trade policies, to prevent offshoring?
Just remember, for every Joe Q that is in foreclosure, there is a John Smith who pocketed the profits, or a bank that made the interest. The benefits were reaped. It’s a zero sum game…