Why is the Stock Market Rising as the Nation is Crumbling?

Although I am pleased to have been invested in it for most of my life, neither I nor anyone can claim to fully understand the stock market and its bizarre gyrations.

Case in point is the fact that market indices recently reached new highs as the nation stands at the precipice of fiscal Armageddon, a dangerous game of chicken being played by Republicans and Democrats, including President Obama.  The issues are: enacting a budget or stopgap plan to keep the government operating after September 30 and whether and under what circumstances to increase the debt limit beyond the current staggering level of $16.7 trillion.

Many Republicans say that they will not approve a budget unless the "Affordable" Patient Care Act is delayed or repealed, and they have expressed a willingness to shut down the government over the issue.  Although the health care plan is currently as unpopular as it has ever been, the president says the issue is non-negotiable.

Many Republicans say that they will not agree to an increase in the debt limit unless budget cuts equaling the amount of the increase or more, are enacted.  The president says that this issue as well is non-negotiable. He seeks an end to the "sequester" and yet another tax increase on higher income Americans to bolster the Treasury. The nation is expected to default on its debt around October 18 if action is not taken.  This could cause another downgrading of U. S. debt, a long-term collapse of the stock market, and send chills through the world economy.

In addition to these crises, our economy remains lackluster, unemployment and underemployment are far too high, and middle class incomes are generally stagnant.

I am as much for optimism as the next guy or gal, but what does the stock market have to be happy about?