States are broke, local governments are even more broke. Many have enormous unfunded pension liabilities and out of control contracts with workers (SEIU and teachers being good examples). There is simply insufficient money to make it work.
By forcing asset prices higher (stocks), The Fed hopes to prevent the wholesale meltdown of the pension system. better to pay off in devalued dollars than not at all.
It is all a ponzi, kick the can down the road. At some point it will all come crashing down. However it ends we will all be poorer ...
schu
“By forcing asset prices higher (stocks), The Fed hopes to prevent the wholesale meltdown of the pension system. better to pay off in devalued dollars than not at all.”
I agree. The extremely low interest rates on treasuries has propelled an asset bubble. The bubble is not just in stocks. Bond prices have soared although they have retracted a little in the last month or so.
Individuals living on retirement savings are in a difficult place. Rates on traditional safe investments are insulting. The asset bubble is frightening.