"Implicit in this
reaction is the belief that the Fed is an all-powerful entity that can choose
to keep interest rates (short term and long term) low, if it so desires, for as
long as it wants. While this belief in the Fed’s power to set interest rates is
touching, I think it is at war with both history and fundamentals. In fact, if
there is blame to be assigned for the market collapse, it has to to rest just
as much on investors who have priced contradictory assumptions into stock
prices as it does on the Fed for encouraging them to do so."
