Welcome to the great lie. Healthy markets.
Markets don't react to fundamental economics anymore.
This morning, amidst McDonald's revenue miss, a slump and huge miss in home sales just prior to interest rates backing up, the DJIA is up 31 points as I write this to 15, 574.
Why? The FED cannot stop QE. There is no exit plan. Just the hint of tapering QE down a couple of weeks ago sent stocks plummeting. Obama's administration would be in ruins- right at that moment in time when Obamacare is set to begin.
Here's a clip I first viewed at the Daily Paul. Bernanke admits the economy would "tank" without QE. It now appears QE is here to stay at least until the 2016 elections where politics might dictate hamstringing the new administration.
The great lie continues. For at least a couple more years.