Put it this way: Bonds have an embedded put = If company goes broke, I still might get something when they sell assets. Stocks now have an embedded put = If company goes broke, US government and the Fed Reserve could buy shares of stock and the price will go back up a bit and I will not lose everything. HOWEVER, in the case that the company did go broke and the US Government screws me and does not buy the shares, I now have NOTHING. SO WHY WOULD WHY EVER BUY ANOTHER STOCK? There is no reason to buy stock anymore if both stocks and bonds have an embedded put. You are theoretically better off buying distressed bonds than a distressed US Government backed stock. What you guys think?