Timber I'm not sure what's not to get. The chart suggests that the market was responding to the FEDS open market operations - QE, which it was.
In other words the FED is trying to buy confidence, and I believe in the current market (stock market and otherwise) it is a false confidence, as opposed to REAL confidence driven by REAL economic growth. If the stock market (and retail) was bouyed by genuine growth in an economic environment that wasn't propped up by QE (or hint of QE) and low interest rates then I wouldn't be so cynical.
In addition if the FED was doing its job properly in the first place these recurring asset bubbles would have never existed and calamities like 2008 would not have happened.
Retail figures are often suggestively linked to growth or as a lead indicator for growth, but I would argue that in an environment like this they are somewhat misleading. Retail figures are a function of confidence and/or availability of credit.
I'd like to point out that your Chrysler article supports that notion:
"The money is so cheap now," said Jesse Toprak, TrueCar.com analyst. "Higher resale values and cheap money has been enabling automakers to offer some of the most attractive leasing programs we've seen in years."
As I said, its misleading. If people buy stuff on credit and that boosts retail figures what is that really telling us?
If retail was a reliable measure of economic activity or economic direction than why don't we talk about what the retail figures or car sales were doing pre-2008?
SKOL - "And it's just been announced that where I live property prices are up 124% in the last decade."
The Australian property bubble has been growing over the last decade. I'm sure almost every suburb in the country has had more than 100% growth in that time, mostly as a result of the FHOG. Next you're going tell me real estate doubles every 7 years.
