> The fed IMO deserves a ton of credit for saving the American economy from a massive depression - twice so far since 2008.
I'm not sure I agree with this. I think The Fed stepping in after the stock market crashed in March 2020 gave stock investors an unreasonable expectation that stocks are safe. Stocks are a risk-on asset and should be treated as such. Right now many people treat them like a savings account. IMO we should've let the stock market crash lower so people understand that stocks are not risk free.
Also, we may not know all the consequences from all that money that The Fed printed yet. So far we are seeing increased inflation, which hopefully will go down when / if they raise interest rates again, but we'll have to see what happens. I think, if anything, The Fed having to step in showed that the traditional markets are a house of cards as well. Just like in crypto, people just want the of price of stocks to go up, but that isn't reasonable. Volatility is normal and sometimes there should be crashes in markets so that people understand the risks.
I'm not sure I agree with this. I think The Fed stepping in after the stock market crashed in March 2020 gave stock investors an unreasonable expectation that stocks are safe. Stocks are a risk-on asset and should be treated as such. Right now many people treat them like a savings account. IMO we should've let the stock market crash lower so people understand that stocks are not risk free.
Also, we may not know all the consequences from all that money that The Fed printed yet. So far we are seeing increased inflation, which hopefully will go down when / if they raise interest rates again, but we'll have to see what happens. I think, if anything, The Fed having to step in showed that the traditional markets are a house of cards as well. Just like in crypto, people just want the of price of stocks to go up, but that isn't reasonable. Volatility is normal and sometimes there should be crashes in markets so that people understand the risks.