Drudge Report today has two headlines that seem contradictory: the Dow is at record high, while Obama and Kerry threaten war with Iran. Meanwhile other economic indicators are down.
The market is an indicator of what money managers think the economy will be doing in six months. What does the market know that the rest of us don't?
Maybe that war is what it will take to get out of the Great Recession? That is what it took to get us out of the Great Depression at the end of the 1930s. The New Deal sure didn't get us out, although FDR tried very hard.
