330,
I certainly agree that banking sector health is considered by the Fed, but do you disagree that the current Fed monetary policy has more to do with deficits and debt than making the fat cats fatter? The Fed realizes correctly that US government borrows nearly half of every dollar it spends. Annual deficits are nearly 1 trillion. The US government's debt is now more than its GDP. How do you think a government finances this type of crime against its own people? Can you imagine how much worse the fiscal crisis would be if the Fed put rates higher or didn't have massive monthly bond auctions?
The problem in the US is not the Fed. The problem is spending. No amount of realistic taxation could cover the government outlays. Everybody talks about the Fed as if they are to blame. We should look no further than the Obama administration and Congress for perpetuating a massive fraud against the people. Balance the budget, start paying down debt, and the Fed policies will return to more reasonable levels... As will property in Hong Kong and inflated markets around the world.