If the economy is so fragile the the government cannot allow failure, then we are indeed close to collapse.
Plenty of investors have underestimated the extent to which Fed policy could move and prop up markets. While I am not sure how much of the 54 month bull market is attributable to the Fed, others have tried to quantify it, I believe it is clear that we would not be this high without the Fed. I think this is supported by how far ahead of many other markets that the US is.
I am not predicting a collapse but it is crucial to pay attention and remember that there is no playbook for when the Fed slows down its asset purchases.