The investment class is apparently drinking the Kool-Aid of its own making, truly believing the stock-market run-up represents substantive economic activity. This is very evident in a news story from Reuters, to wit:
“Stocks on both sides of the Atlantic were boosted after a survey of U.S. consumer sentiment in early May rose more than economists had expected, with more Americans giving favorable views about their financial and economic prospects, particularly among upper-income households.” (emphasis added)
This makes one wonder exactly how much the input from upper-income households skews the results from these consumer sentiment surveys. Anytime the survey reported a substantial upswing over the past five years, I had to ask myself if a) the data methodologies are skewed towards reporting positive results or b) fluoride in the water is actually an hallucinogenic.
2013.05.23 update: More Kool-Aid, less action.