Letters: Gov’t stimulus vs. market forces
Laurence Krause, the scholar who wrote “Fed shouldn’t back off stimulus” , clearly has an academic view of our economic reality.
Job growth and employment are limping along after four years and billions of dollars of federal stimulus and deficit spending.
The stimulus has helped those with large investments in the stock market become even more wealthy. Has it changed the life of those people with small amounts of savings?
Manipulation of the stock market has always been a fear for the average person and here we have it being sponsored by Washington and the Fed. There was a time and place for this stimulus, but that time passed two years ago.
It is time for this economy to stand on its own and for the government to get out of Wall Street. When this government stimulus ends, watch out below in the stock market.
Rich Adrian, Huntington
The Federal Reserve cannot keep pumping money into the economy forever. A gradual decrease in its purchasing of securities is needed. The emphasis must be on gradual. Interest rates must rise and rampant inflation can be avoided if the government winds down the stimulus slowly.
Yes, interest rates will go up, but so will the purchasing power of savers, some of whom are retired. The stock market should reflect actual value as perceived by the market without pressure from the Federal Reserve.
It may already be too late, as a possible bubble may exist in the bond market. One final thought: The stimulus cannot last forever. Did anyone expect it to?
Clifford J Watins, Commack