This would seem like the logical conclusion. You can pump and pump for only so long before some kind of limit is reached. Can the FED really just "tame" the business cycle, "set" the price of financing, and paper over any and all adverse market reactions from property to equities to fixed income... etc, etc. It would appear as though the answer is yes. Is there no limit to the balance sheet manipulations? The balance sheet thing is insane. Trillion for this, trillion for that, and on and on.....
That's why will never have free markets. Because they believe, the fed, can control the business cycle but in reality havent a clue how it works especially now, with handing out trillions of dollars...there is absolutely no such thing as economics 101 any more..it cannot exist when the fed is at the helm making daily decisions where rates go when the markets in itself should generate the true rates.
Trillion for this and trillion for that is what is keeping stocks inflated and 401ks pumping higher each and every day...there is no way now they would have a repeat of 1929, 1987, 2000 l, 2007 etc. There are just too many dollars tied up now in pensions and retirement accounts that if they were to lose even 17% of their value the world would come to a complete halt.
How would a complete halt look like? No food reaching the big cities in the US? Residents of big cities believe that food is dropped magically from the sky to their breakfast table.