It is all perception or feel good publicity. The Fed wants the stock
market to fly because that number is reported in almost every news
outlet.
People may not have any money in the market but when the numbers
are flying people feel good about the economy. If the market tanks it is
reported far and wide and people feel bad about the future of the
economy. So the fed bumped up the market, exactly the same thing they did
just after the dot com bust and exactly what fed the housing bubble.
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