Stock Market Too Big to Fail: “Fed Will Prop It Up Whatever the Cost”

"If the stock market is now too big to fail, the Federal Reserve will have to prop it up whatever the cost. Ultimately, this may require indirect purchases of stocks–an action that other central banks are already pursuing directly or indirectly via proxies. This shouldn’t surprise us. After all, the Fed directly bought $1.5 trillion in mortgages (mortgage backed securities) to prop up the housing market, and a few trillion dollars in Treasury bonds to push interest rates down."