Bail Tale

This is the wildest party that there ever could be
Oh don't turn on the light 'cause I don't want to see
--Three Dog Night

Burgeoning debt in the US coupled with $trillions in money printing. Record earthquake and subsequent nuclear meltdown in Japan. Middle East on fire. Sovereign debt crisis in EU coming to a head.

Yet, this am, domestic stock markets are challenging fresh recovery highs?

Outside of nefarious conspiracy theories that has the US government or its agents buying stocks here, the most reasonable explanation I can find is that markets are looking thru all of these problems to what they believe to be the solutions to them all: more bail outs with an emphasis on money printing.

This is, of course, the essence of moral hazard.

position in SPX