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Comment by ttul | Hacker News Reader

Thank you for pointing this out. Secondly, just what the hell is the central bank supposed to do? Had they not intervened hard in debt markets, we would have seen bank runs and mass chaos in financial markets, making things we take for granted (such as paying for stuff at the grocery store) totally fail over night.

I am wayyyy less worried about the magnitude of the Fed’s intervention than I am about what might have happened otherwise.

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Lately, I've been amazed at the number of people that have been arguing in favor of allowing "otherwise" to happen.

Everyone is afraid of „otherwise“ without anyone having witnessed it before. My guess is, we are trading short / mid-term stability for decreased long-term efficiency / productivity

Which in my opinion is acceptable, because it's the short-term chaos that is the most likely to bubble out of control and turn into a long-term chaos. Imagine the chaos that would besiege the world if there was a risk of bank runs and people not even being able to pay for food anymore. We're only three to six missed meals away from absolute anarchy and violence in the streets.

The Fed is doing a great job with current tools but they're a bandaid for bigger issues. It's not a question of if this becomes an issue it's a question of when. The longer you let the bubble build the harder it is to deal with it. Economic stagnation similar to Japan... is tough to deal with.

Beats continuing to bailout the corporations instead of the people.

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