I am amazed at the near universal belief that everyone seems to have in the Fed and the Government. The arguments proposed and the comments made seem to imply that the Fed can pull off some sort of miracle bailing out consumers by causing wages to rise, property values to rise, the stock market to rise, and to create enough jobs so that everyone can live happily ever after.
Financial and asset speculations of this magnitude throughout history have never ended well. There were deflationary crashes in Japan, the Great Depression, the South Seas bubble, the John Law Mississippi Bubble, Tulip Mania, etc. In each case the bubble collapsed after sentiment changed towards speculation. Once sentiment changed it was never again revived.
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