Dear my comrade FED is not the hero we need but the hero we deserve. It did it's job Remember the 1907 bank crash and 1929 stock crash ? Without central bank inject money in the system, the whole america economy destroyed. That is nearly 100 year ago, when globalization is nothing but war, invade, and enslave other countries. Yet, the rise of Hitler have some tailwind thank to America economic crash, Germany was forced to pay it debt with it devastated economy, and when America capital pulled out the economy of Germany totally destroyed. And you know what happened next when people don't have work & food, my comrade Now imagine the liquidity crisis happened again in this globalization era, the ripple damage not only harm US economy alone but the whole world aswell, just like you are driving a schoolbus full of student at 200mph and someone brake-check you Yes, it's bad that the FED keep lowering rate, but the economy's now like a junkie who got high all the time (QE, low FED rate), he can die of shock if you suddenly cut his supply And my comrade you don't want to see you hard-earned allies turn to China for help
Rather than just repeat or paraphrase what has already been said about Treasury-Fed-SEC- tools available to let some of the air out of bubbles, I will refer you to pages 41-45 of The George Soros Lectures at the Central European University. This little book is available for a few dollars on Amazon. The primary tools, of course, should be aimed at reducing the amount of leverage. And of course one of the first things that should come to everyone's mind in that regard are the margin requirements; yet another are the minimum capital requirements. But this barely scratches the surface of what is available to our regulatory bodies. These tools however need to be judiciously applied early on in the formation of bubbles and not delayed until the bubbles have ruptured, at which point they may be harmful rather than helpful... Needless to say, politics must be excluded from influencing our regulatory bodies..