We’ve seen a couple of weeks of rising stock market indexes. Today the DJIA was up over six percent. The President, the media, and many pundits are talking about having reached a market bottom. They all forget that this recent rise has only brought the indices back to the lows reached before Timmy and Barry made their first set of fumbles. We’ve made it back up to an ordinary recession. Woo hoo.
I suggest the rise is significantly attributable to the continuing value created in the US economy. As I have documented, 142 million people are still at work. No factories have been destroyed, and no skills have been wiped from workers’ memory. The sky was not falling. A dynamic economy was realigning itself, finding its new best allocations of resources.