UBS: The Secret Reason The Fed Is ‘Tolerating' Bubbles

``One option would be to stop printing money and raise interest rates, the classic maneuver, "which would typically have been seen as the first, and possibly only, line of defense," UBS explains wistfully. But it would wreak all sorts of havoc on the financial markets and deflate the wealth of those who've benefited from the money-printing binge. UBS explains it this way: "with economic activity levels still seen as too fragile in most major countries, central banks have been searching for substitutes."''