"whatever Joe Public thinks then rest assured the powers that be have though of it plus any number of other factors"
The Fed, almost every mainstream economist including Ben Bernanke were completely blind-sided by the GFC. The Fed must talk up the economy at all costs, it's a confidence game. They will ALWAYS spin it higher.
"When the Fed buys an asset and increases its balance sheet"
The Fed is lowering interest rates, that is the primary goal of QE and bond purchases. The market does not want enough US bonds to drop rates, the Fed must buy them instead. Encourage spending. They wouldn't need to do this if the economy is strong.
"Employers do not employ (even casual part-time)"
Employers are increasingly employing casually, part time and contract rates. Which results in lower income. That's what's important. Income per capita, which is falling. Asset prices are rising as the top end of town (who already has assets) can borrow cheaply and bid up prices. Unsustainable. Leads to rising wealth divide and social unrest. Explains Brexit and Trump victories. Will only get worse.
Retail stores and construction companies are closing all over Australia.
US stocks have had a great run, longest in history. The odds are the run is over.
