The rising stock and housing markets are the Federal Reserve’s Potemkin facades designed to convince us that the economy is recovering under their quantitative easing (QE) program. Potemkin villages are usually set up for a short duration and act as a cheap substitute until the real thing can be put in place. The Fed’s QE program, however, has been an expensive long term scheme.
Most failures or disasters are of limited duration. Think of the short-lived New Coke or the Edsel. Failures are quickly identified and remedied, unless they are government disasters – those are rewarded with longer tenures, more excuses and more funding.
The Recovery is a Fugazi, a fake. And Yellen seems bent on continuing the money printing.