Isn’t it the Fed’s job to contain inflation and not try to be the over-sensitive catcher in the rye rescuing Wall Street bankers from their own folly? We’d be better served by a computer program that non-politically adjusted key perimeters to keep inflation (M2 or M3) in the 2-3% range. The Fed seems to hop from bubble to bubble.
The Fed's job is to maintain orderly markets too. Were you around for the 1987 crash? The first day was bad. The second day was insane. Almost as if there were no buyers for stocks at any price. The Fed pumped in the liquidity Monday morning and by Monday afternoon a semblance of sanity had returned.