... although to be fair to him, the stock market and the economy have overlaps, but they aren't the same thing as each other.
For myself, I think the economic process I was expecting to happen is happening. Which was a short sugar high as a result of lower taxes and reduced regulations, followed by a recession as a result of the actual consequences of mismanagement: a larger deficit and the damage resulting from abuses of the system.
If this diagnosis is correct, the stock market will reflect the immediate sugar high profits, then slump in anticipation of the slower growth or recession which follows.
The Fed, of course, will naturally increase interest rates to limit the sugar high, resulting in a deeper contraction than might otherwise occur.
It's the Republican economic model: bubbles and crashes; as opposed to Obama's dull but steady and predictable progress. Financial institutions prefer the Republican model as they do well when they seem useful and they seem useful when its clients need guidance through the chaos. Businesses generally prefer predictability.
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