Is the Fed Causing a Stock Market Bubble?

Paul Greaney
By Paul Greaney
October 20, 2020NTD Business
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Are more stimulus and debt really a good idea? Most people say it’s fine—as long as it’s spent the right way. But maybe not trillions of dollars.

But what about direct intervention by the Federal Reserve?

The Fed has been buying all kinds of financial assets since the pandemic began and its balance sheet is growing again. It’s to “support” the financial markets. But Lance Roberts at Real Investment Advice says it’s creating a moral hazard for investors where they can throw caution to the wind because the central bank is there to support them.

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