Stock analysts' projections of the inevitable rise and run of stock prices due to their claim of an undervalued stock market has continually contributed to the rally which has battered the Bears, and a group held in such low regard, I am talking about the analysts now, that have been able to survive on unemployable murky skills, almost as murky and unemployable as economists. But there they are, pumping stocks despite all the leaking waterlines of nearly every sector of the economy. They trot out analogue and historical earnings ratios of now broken industries and place a rally sticker on anything that is below their valuations.
Of course it is crap. But crap is the fantasy which powers the very essence of the Wall Street investment community, make up a story, securitize it, only take what you can steal, and then sell useless insurance against a raid on fantasy values where there is no market, just their mark. Lifting bales of stimulus money has not been easy when also worrying about public image, and a system, now gamed forever by forceful Fed and Treasury policies which have come to prove what everyone has always known, politics and Washington, investments and information, and money, belong to the makers.
