Yes, the stock market could be punished severely for these admissions on the Fed’s behalf. A severe punishing could take the stock market far below the March 17 closing price of 1278.60 when the Fed and JPM orchestrated a bailout of Bear Stearns. The daily low close of the year happened on Monday March 10 at 1275.60. These should be Custer’s Last Stands, the last lines of defense for the bulls before taking out the 2008 year lows.