Key quote:
It’s a risky game for the Fed; maybe it’s been itself tranquilized towards risk because of its long string of successes at containing crises. It may be hard to time this game so carefully. It’s annoying how Wall Street complains about protectionism protecting the incompetent and welfare corrupting the poor and then quickly turns to the state screaming for a bailout. But without a bailout—or the somewhat comprehensive socialization of investment, to quote Keynes—they could take us all down with them.