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Has the bull market in stocks become 'too big to fail'?
http://articles.latimes.com/2013/mar/03/business/la-fi-0303-bull-market-20130303Has the bull market in stocks become 'too big to fail'?
The Federal Reserve's efforts to keep the U.S. economy growing may not work unless the stock market keeps moving higher.
March 03, 2013 | By Tom Petruno
Officially, the Federal Reserve isn't supposed to worry about keeping stock prices flying high.
But when Fed Chairman Ben S. Bernanke was asked about the market's outlook last week on Capitol Hill, he sounded like a lot of bullish Wall Street investment strategists.
"I don't see much evidence of an equity bubble," he told the Senate Banking Committee in his semiannual testimony on Fed policy. Stocks "don't appear overvalued given earnings and interest rates."
More important for the markets, Bernanke pledged to continue the Fed's policy of pumping colossal sums into the financial system to support the economic recovery.