The conventional wisdom has always been that the FED would not "allow" a market crash...
And that the Plunge Protection Team would snap into action at the least unpleasantness. And that may be true even yet.
If the markets were to dive...the Bernanke FED would likely lower rates immediately... But if the problem is the dollar and the deficits...THAT would be like pouring gasoline on a fire.
The economy is tending toward STAGFALTION---that is the great underlying force in the economy...
And of course the forces against this are Washington, Wall Street and the FED...and perhaps some global central banks who are quite ready for the Post-Dollar World.
Still I would not rule out a market crash in October... It will need a catalyst... Some event, perhaps minor, that spins out of control... Perhaps taking out a hedge fund or a large bank.
This market has been walking on eggs for years now...and it wouldn't take much to take it down.
