I agree with your gut instinct, that this is not true. If it were, why would barney frank approve 4 trillion in new back up money by the fed for the financial houses just this past december? I also don’t think that the stock market should be this high either. I think that federal reserve money has gone from the investment houses and into the stock market, raising the P/E ratio to 28/1. Way too high for this economy, despite poor earnings.I look for the stock market to go to 4-5,000 at some point in the next 1-2 years and for much more bail out money going to the financial houses as Alt-a, ARM and commercial real estate finally hits the banks bottom line.