Stock Market Gains Created By Government Bailout Monies

If you have been following the stock market closely since March 2009, you would be able to draw the conclusion that the gains of the stock market are not based on solid economics. I think what we are seeing is what market analysts call a 'dead cat bounce'. Per Bob Chapman, "there is low volume in the overall market and short covering", which typically infers a bear market and lower market prices. In addition, the market is pricing in the future economic strength that we are suppose to have, and this is simply not possible with a weak dollar. You cannot have a weak dollar, and a strong economy. Also, there is no such animal as a jobless recovery, especially when our economy is fueled by 70% spending. What's more is that the savings rate among Americans is increasing quickly, so the people that do have money are saving more and spending less. The latest government numbers showed that Americans were saving approximately 7% of their income on average, versus 0% of their income on average a year ago. This is the highest our savings rate has been since 1994. Based on the graphics below, I would conclude that people across all generations are saving more and making less.