|"If I only had some teeth."|
The Fed is helpless to ease the pain. It can't lower interest rates any more because they are at zero already.
The stock-market decline will shed light on recent hunting for yield – leveraging returns by taking on more debt, that has been under way during the zero-bound-interest-rate era.
It will raise the pressure for financial reform. Senators Bernie Sanders and Elizabeth Warren have an opportunity to remind the nation what is wrong with U.S. financial markets.