The Delusion of Zero Interest Rates and Fed Intervention

This chapter discusses the belief among investors that the Federal Reserve will always cut interest rates and intervene in the market, leading to inflated stock prices. It highlights the risks associated with this belief and the potential consequences of relying on the Fed to prevent market declines. The chapter also emphasizes the need for rational valuations and raises concerns about the impact of increased bond selling on interest rates and the possibility of a bond market collapse.