Don't get fooled. We are on the track heading to a new era.
Fed has just tapped tremendous currency supply and promised to continue to do so.
Euro zone is exercising big trouble on the rim of falling apart.
A looming war between the Koreas introduces uncertainty for China, Russia and Japan, it will drive international funds to escape to the US for safty harbor. As a by-consequence, all hassles in Middle East such as Iran will naturally settle catering to US interests.
The US has done a great job!
Traders, who ever misread the trend to assume bearish, economy slump, double dip or things alike between early May and early Dec till FOMC meeting, especially between early May and middle Sept, had better seriously self-review the shortage of skill set.
The USA stock market might be the only shinning star
Wall Street hierarchy has been well fixed and established with Fed having injected good amount of low cost captial supply, at least enough for right now. And the interest rate is still low but US$ has been picking up.
Money-wise, the US will be stepping into a positive cycle which may work as follows. Fed hikes interest rate and hence overseas US$ comes back to the US to push up the stock market. At the same time, international funds will come to jump into the US pool as well. These captial pulling out from all over the world other than the US will cause the monetary supply shortage and hence the rest world will have to borrow from the US, the cost of which will be keeping going up because Fed keeps hiking interest rate. However, other countries have to do it this way in order to recover the economy.
The USA, typically Wall Street, is the only winner of the subprime crisis which is well plotted and executed by the US financial elites.