Why doesn't the Fed buy stocks with printed money?

>>1494412
China: "The US should stop manipulating markets."
Europe: "Market manipulation by the US Federal Reserve continues."
News Anchors: "The markets are at all time highs. But people are still buying because they know the Federal Government would never let them down."
News Anchors, Later: "It seems stocks are falling hard after the biggest bull rally ever. US investors everywhere are blaming the US government for it oversight on the markets, and wondering how they could keep letting it get so bad when it was CLEAR they should have warned investors of...."

>never
>crash
pick one

>>1494412
The Fed doesn't care about stock market levels, at least not directly, because the stock market doesn't factor into GDP, jobs or inflation. The stock market is a symptom of a healthy/unhealthy economy, not a cause. Instead, the Fed manipulates things like the prime interest rate and the money supply, to encourage lending, investment, and growth.

Some of these policies do have the side effect of supporting the price of stocks, but its not what the Fed is actually seeking to achieve. It's simply the result of the policies working.

>>1494652
What you're saying is what the Federal Reserve is supposed to be doing and what it did do in the days of William Chesney McMartin.

However, the Fed cares very much by stock market and housing prices today, which is why it is deathly afraid of even raising the funds rate any more than 0.25% per year. Remember when they said that they would start normalizing rates once "full employment" was reached? U-3 is now under 5% and the Fed has yet to raise rates this year. Instead, various Fed heads make comments to the media about what they might do.

Since when did these academics become media stars making cameos left and right?

The Fed has treed itself and is almost certainly screwed. It will not be able to unwind its balance sheet or normalize rates without causing a crash in some goosed asset. The Fed's policy was to create a so-called wealth effect and it's questionable how successful those policies have been. What the idiots at the Fed fail to realize that a wealth effect must also have a counterbalancing poverty effect.

The difficulty, which no one seems to know, is when the Fed's house of cards will finally come tumbling down.

We're approaching 10 years of ZIRP and quantitative easing so the economy must really be roaring by now, eh?

>>1494412

>federal reserve
>hey guise if we pump our markets with cheap cash the economy is gud right LMAO :D
> snapchat is worth 15 billion :D

let's just put some paint over our crumbling economic foundation and as long as everyone believes it looks pretty then we're good !!!

>>1494412
BOJ already tried that in the Japan stock market.
http://www.zerohedge.com/news/2016-08-29/japanese-government-now-largest-shareholder-474-big-companies
http://www.zerohedge.com/news/2016-08-23/clsa-bank-japan-has-nationalized-japanese-stock-market
http://www.zerohedge.com/news/2016-08-14/bank-japan-will-be-top-shareholder-55-companies-end-2017
http://www.zerohedge.com/news/2016-07-31/putting-bojs-purchases-context-equivalent-fed-buying-580-billion-etfs-2-years
http://www.zerohedge.com/news/2016-04-25/stunning-finding-bank-japan-now-top-10-holder-90-japanese-stocks
http://www.zerohedge.com/news/2016-04-24/why-goldman-expects-japanese-yen-collapse-within-12-months
http://www.zerohedge.com/news/2016-04-20/why-stocks-rebounded-overnight-goldman-expects-boj-double-its-equity-purchases-soon-
http://www.zerohedge.com/news/2016-04-15/bank-japan-already-owns-over-half-all-etfs-it-wants-own-more
http://www.zerohedge.com/news/2016-04-12/japan-leads-global-central-banks-end-game
http://www.zerohedge.com/news/2016-04-11/former-imf-chief-economist-admits-japans-doomsday-scenario-now-play
http://www.zerohedge.com/news/2015-10-29/boj-owns-52-entire-japanese-etf-market-now-kuroda-wants-more
http://www.zerohedge.com/news/2015-05-13/its-official-boj-has-broken-japanese-stock-market
http://www.zerohedge.com/news/2015-03-25/bank-japans-10-trillion-equity-portfolio-not-large-says-bank-japan
http://www.zerohedge.com/news/2015-03-11/how-boj-stepped-143-times-send-japanese-stocks-soaring
http://www.zerohedge.com/news/2014-09-24/bank-japan-buys-record-amount-equities-august
http://www.zerohedge.com/news/bank-japan-goes-full-tilt-buys-record-amount-etfs-and-reits-open-market-prevent-market-collapse

>>1494849
>However, the Fed cares very much by stock market and housing prices today, which is why it is deathly afraid of even raising the funds rate any more than 0.25% per year.
Um, no. The Fed's reluctance to raise rates stems from their fear of stoking inflation. They know full well that the stock market will take a hit. They don't care, and they shouldn't.

I'm not saying the Fed is oblivious or indifferent to the markets. A lot of individual wealth is tied up in the markets (50% of all Americans own stock). But short of causing an outright panic, the Fed doesn't make policies based on raising (or lowering) the markets.

BTW, if you want to have an intelligent discussion on a topic, stop being a massive lying faggot. Making claims like "10 years of ZIRP" or not knowing that QE ended in 2014 just makes you sound like a child.

>>1494412
Why doesn't the fed buy chipotle franchises with printed money? it will increase our gdp and make them bank...

>printed money
is there money that wasn't printed?

>>1496008
most money isn't printed

> U.S. currency is based on the good faith of the United States
> Let's remove the only thing it's value is based on

>>1495908
>>"ended"

>>1496008
Chipotle doesn't franchise their restaurants otherwise we would be.