The steepening yield curve is a bet by players that all forms of stimulus already implemented, along with those planned, will spark the top while providing enough anemic growth in the middle to grow the economy. The real estate market is a large unknown and so to is whether tickle down will increase borrowing at all levels. Profits for business and any spending by consumers have come so far from adjustments made by reducing expenditures in their overall operations. Not a growth dynamic. The Feds absolute belief in the inability to attain normal growth without massive subsidisation is clearly derived from a vision where once normal business opportunities are being cleavered by the hoarding of capital.
Stocks rallies to date have been a brand name affair which is not so much a vote of confidence in the economy as it is from a lack of perceived broad investment opportunities. Apple, IBM, and Ford are examples of where distorted premiums result from a reluctance to buy beaten brands as if the chosen live in a world outside of this one. So both the Fed's reasoning and brand name strategies have at their very nature an implied risk resulting from an extreme lack of confidence in future growth. Failure to develop a recovery would leave the Fed willing to target other ways to stimulate the economy and would leave favored brands as just a target.
