Fed the Magic Dragon

This article just reiterated my concerns about Fed policy. http://www.ft.com/cms/s/0/c2f7e3d4-a9e9-11de-a3ce-00144feabdc0.html

I have been shocked by the summer stock market rally for about 3 months now. The Dow Jones was almost at 10,000 before it started falling this week. I can find no rational reason why it has or will continue to stay at anything above 8,000 to 8,500 levels. If I am right, a lot of investors are going to lose a lot money pretty soon.

The article linked above says the government is propping it up and the Fed is creating artificially high asset prices through its ludicrous, short sighted policy of printing money and holding Fed discount rates at 0% to 0.25%. If this continues not only are we going to see the stock market fall we are on the verge of another economic collapse. I sincerely hope that what I am seeing is wrong because this could have very negative social consequences. If the number of unemployed people grows to depression type levels we are in for a major upheaval, crime, and all other kinds of very serious problems.

Despite the Fed's magic tricks, you can't prop up a needed correction artificially. It will come if you maintain stable policies and let the market correct itself. I am starting to sound like Ron Paul. He seems to be the only political figure who is recognizing the ramifications of what the Fed is doing.