SOS Myth with a chance of Bull Rally

Why is US keeping the interest rate low when the US economy is recovering?

Have anyone keep track of the unemployment numbers?

What about the housing implosion, had it been resolve with the bailout?

What about the climbing deficit?

Ok, instead of looking at the entire US, which is much more complex, why don't we just focus on say, California.

• why doesthe government of California does not have sufficient fund from tax? Is it due to increasing unemployment?
• how can more unemployment boost the house price when they do not have money to pay their rent?
• if California economy is recovering strongly, does it has to resort to increasing deficit spending?
• if the market had recovered, why didn't they quickly remove the stimulus program?

Should we believe what the main media said? Or believe the government? If they said the the economy is out of recession and on a growth path, why didn't they just increase the interest rates?

If the economy is recovering, why don't the government stops the stimulus?

If overdebt problems can be resolve by just stimulus programs, then why are the banks not lending and consumer not borrowing? If they are hit by the overdebt problems again, just do another stimulus, after all, they have the money printing machine.

Sometimes over analysing the economy may be a problem. We notice that most media and economist or analysts tends to lag behind because the reasons they gave are to substantiate the outcome of the market movements and their projections or forecast tends to be on a linear basis, like what the S&P forest of 2009 and 2010 earnings in early Jan of each year is out by 50%, and why should we believe them after all.

MyView

The share market is reliance on the stimulus to move, the moment it is remove, we will see what happen.

The right question to ask is the recovery sustainable?

Look at

• Unemployment
• Housing market
• Deficit
  

Has the Government stimulus plan resolve the fundamental issue of the housing bubble or merely defer it? Doesn't it look exactly like Japan?