HWG, I am long stocks, but I don’t think the Fed’s job is to reflate the stock market or housing market.
Maybe that wasn’t your suggestion. Anyway, as long as 80% of the banks and the ‘system’ are still standing at the end, then we don’t need any bailout or excessive air added. I think it would be healthy to have one or two banks get taken over and the top management fired. Nothing personal, just healthy excision of excess moral hazard. I do not subscribe to the theory that almost all financial institutions must survive in order for the system to thrive. And dozens and dozens of hedge funds can become worthless with no long term harm to our society.
