"How far will the Fed let the markets slide and how fast will they let it happen before they start QE4 and pump the markets back up?"
All4one,
It has not occurred to you yet that QE is a tool of last resort to be employed only when interest rates are against the zero lower bound? This is ELEMENTARY, really basic stuff. Have a look.
What is 'Quantitative Easing'
Quantitative easing is an unconventional monetary policy in which a central bank purchases government securities or other securities from the market in order to lower interest rates and increase the money supply. Quantitative easing increases the money supply by flooding financial institutions with capital in an effort to promote increased lending and liquidity. Quantitative easing is considered when short-term interest rates are at or approaching zero, and does not involve the printing of new banknotes.
