Irrational Exuberance

Do you remember when Alan Greenspan gave his famous “irrational exuberance” speech when he thought the stock markets were too high? Well my question today is: With America’s looming debt crisis and almost certain tax hikes, why is the market again at a 52 week high? The Fed has pulled out all the stops with the lowest ever interest rates, yet markets don’t seem to care that America is almost in default. The fact of the matter is that there is still an American economy, but it’s an economy this is unsustainable in the current landscape. I look for the markets to realize this in the very near future and begin pricing this factor into the price of their securities.