Market bubble / crash

Markets rallied 60% since the March low, but we didn't have any correction. Dubai is an example -- not to chase markets. Markets advanced with trillions of portfolio coming into markets at the March low, and because of the size of inflow is enormous compared to the reality of economy as we see high unemployment, markets could not afford to show a correction fading the economic reality. obviously markets have higher risk. SPX PE has risen dramatically since the March low shown on the PE ratio chart.

• Bad to Worse: Dubai's Palm Island May Be Sinking
• Cost of Insuring Dubai Debt Soars
• Mortgage Applications Rise to Two-Month High

  Demand for U.S. home loans rose to the highest level in about two months, mainly from borrowers locking in low mortgage rates by refinancing. Fewer Sellers Slicing Home Prices Home Prices Continue to Rise

• Obama to Extend Bailout Fund; A Chunk Used for Deficit
• Bailout Watchdog: Crisis Response Worked, Somewhat
• US Senate Democrats Reach Agreement on Health Plan
• Double-Digit Unemployment in California Until 2012
• Jobs Bill in Congress Could Cost Up to $200 Billion

What we do know is that she has her job, and Congress could or would modify the bill.

• TARP Is Not Meant for Job Creation: Watchdog Head

  The head of the watchdog panel for TARP told CNBC that the bailout fund is not intended for job-creation program. TARP Extended to October: Geithner Bailout Fund Fell Short, Panel Says

• Wholesale Inventories Rise Unexpectedly in October
• Mortgage Applications Rise to Two-Month High
• Fewer US Home Sellers Slicing Prices: Report
  • Home Prices Rise for 2nd Straight Quarter
• US Senate Democrats Reach Agreement on Health Plan
• Britain Slaps Banks With 50% Tax on Bonuses
• Double-Digit Unemployment in California Until 2012
• Text Messages: Digital Lipstick on the Collar
• Jobs Bill in Congress Could Cost Up to $200 Billion

• How Well Do You Know Your Big Media Mergers?

Only 50% tax on the bonuses?