Has it occurred to you that the US Treasury decision to buy $85 billion per month is artificially inflating the stock and currency markets? The Fed balance sheet is about $3 trillion and much of it is toxic assets that only serve to create a new bubble. This one is bigger than the one created in the housing market.

The stock market is all about supply and demand. As long as the demand is greter than the supply the market goes up.

Absolutely. It's a well known fact. Financial journalists write about it frequently. I trade the markets from time to time and watch daily trading in certain stocks. A friend and I have noticed that almost no small or mid cap stocks move on any given day... only the larger stocks that tend to make up the major indexes... Dow Jones, Nasdaq, S&P and Russell. This leads one to believe that a portion of the $85b being printed by the Fed is going into these index stocks to keep the markets moving north. If that's the case... it's working. The rich continue to reap rewards from this debacle while the middle class and poor derive virtually no benefit yet pay the bulk of the taxes from their hard work. The playing field is anything but fair...

I think you are misinformed about what the Treasury is actually doing - they are buying up $85B in long term treasury bonds each month, not buying stocks. It's a move to keep interest rates down. We can have lots of discussion as to wherther the Fed buying bonds is good monetary policy or not, but let's at least be sure to discuss the correct thing.