The Stock Market Soars - Why, and for How Long Can it Remain Buoyant Under Adverse Economic Conditions?

I find it astounding that stock market indices have reached five-year highs, close to the level of value which existed before the economic collapse from which we are only now slowly emerging.

What can account for such positive investor sentiment in a nation which is an ungovernable mess? Democrats and Republicans cannot come together on any meaningful legislation. Any bill that is passed is a short-term, stopgap measure, the members consistently asking for more time to do their jobs. Comments are made by members of Congress and the president which display contempt for the opposing side. I would cite two prime examples, (1) a recent insult hurled by Republican Louisiana U. S. Senator David Vitter, the “family man” "moral values leader" whom we learned was frequenting prostitutes, yet he remained in office.  Vitter stated that Democratic Major Leader Harry Reid has shown once again that he is “an idiot.” (2)  Republican House Speaker John Boehner recently told Reid, “Go ---- yourself”:  what "dignified" comments coming from the mouths of the nation’s "luminaries".  How can anything of substance get done when members poison the well time and time again?

The president used his Inauguration Address to assert that he will pursue an expensive social spending agenda and indicated no flexibility which would enable the nation to get entitlement programs under control so that they will exist for future generations. He asserts that we do not have a spending problem, but a health care problem: good grief!

I fear that we may be in the midst of another roaring twenties, pre-Depression pattern which will soon come to a grinding halt.