After seeing the huge influence and power of central banks in today's financial markets, I can't help but wonder if the stock market can even be considered a true and fair market anymore.
This is especially the case for other markets such as the bond market where the leading rate is set by 'a handful of people' at the Fed. How do participants in the bond market even feel like they are part of a fair market when their fate essentially is decided by what the Fed does?
Am I the only one feeling this way – would it really be that bad to let the market develop more freely and let interest rates rise and fall naturally?
Doesn't the current situation just exasterbate bubbles and crises because the Fed artifically supresses the economy's ability to develop freely by keeping the rate at some unnatural level for too long? Aren't they just postponing the inevitable anyway?
I'd love to hear some thoughts on this.
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