by Charles Hugh Smith
Daily Reckoning
A very convenient conviction is rising in the panicked financial markets that the Federal Reserve will “save the market” from a COVID-19 collapse. But they won’t.
“Buy-the-dip” punters are placing bets on the belief the Fed can’t possibly let the current bubble pop.
Oh yes they can and yes they will. Why?
It’s about control. Here’s what I mean…
Just as the Fed gets panicky if interest rates start getting away from its control, the Fed also gets nervous when its speculative bubbles get away from it, even though it causes them in the first place.