But I can’t help shaking my head in disbelief at the incomprehensible exuberance displayed in the stock markets these past few days.

I have ranted and raved of manipulation in the past but this is really beyond the pale.

The Euro is on its last legs and we’ve been warned that it could actually break up within the next few weeks.

Debt Crisis Festers

Greece and Ireland are bankrupt with Italy and Spain not far behind. The debt that has toppled these nations is growing and yet we are led to believe something can be done to stem the tide.

We see suspicious numbers coming out of the U.S. government that would lead one to believe we are on the road to recovery but something just doesn’t feel right. Contradictory reports and numbers lead to confusion and more questions.

Government officials both here and abroad pontificate that we need tighter fiscal policies and austerity measures and yet the borrowing bonanza continues.

The central banks agreed to lower the cost of borrowing the dollar which led the markets to a meteoric rise.

Stocks Surge as Borrowing Costs are Cut

The key word in that sentence is “borrowing”.  What genius came up with this solution? The solution to the massive debt burden toppling world economies is to…wait for it…borrow more money?

We had a massive rally mid week that was supposedly fueled by record Black Friday sales and a European solution of easy dollars. The reasons don’t make sense to me. Black Friday sales were touted as record breaking.

Record Black Friday Sales

I cry foul! With extended shopping hours and deep discounts what did the retailers expect? You can’t change the parameters and say you’ve broken a record. It’s not fair. It’s like claiming you broke the record for the most hot dogs eaten when, in fact, you’re eating cocktail franks. It doesn’t fly.

The rally in the stock market was fuelled by money drunk bankers taking advantage of cheap dollars and bolstering the markets at year’s end to pad their bonuses. Time will tell but I believe folks will eventually be going to jail over all the shenanigans we see in the markets today.

I think the truest sign that we’re in serious trouble is the party mentality that seems to pervade sentiment right now. Things are so bad we might as well borrow and spend as much as we can for as long as we can. The same mood prevailed in 1929. We all know how that turned out.

Eat, drink and be merry today for tomorrow we die.