"Not anymore," Santelli replied. "How can it be? What are they going to do in Washington at midnight tomorrow? How can it possibly be forward looking? We don't know what they're going to do with our money - with trillions of dollars, one-sixth of the economy and that's one example."
But here's how the equation works as Santelli explained - as long as unemployment continues to go up, the Federal Reserve will be reluctant to raise interest rates. And that's a bet investors are going to take - that as long as monetary policy remains easy, investors will continue to fuel the market.
"That's the game - that's why stocks keep going up on an unemployment rate, where the unemployment rate is important to America and investors that are invested in the stock market can still profit. Hey - you know, the last three recessions - what size was Google or Amazon? You know, let's look at who used to hire and how recessions used to be. You know, GM hired hundreds of thousands of people. What were their market capitalizations? Look at Google - how many people do they have? Do you really see this changing?"
So when the Fed finally raises interest rates we would expect money (especially foreign money) to flee the stock market?