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Because 1. Lots of people prefer to believe there was only one cockroach. 2. The Fed has put out 100s of billions and the Government is about to put out another 150 B in efforts to prop it up and they think that will work. 3. Markets often bounce. 4. Interest rates are manipulated to prop things up. If you can borrow at less than the rate of inflation you can lend at very cheap rates roughly half what it would cost here. 5. Some sectors are up eg oil, mining, food related; some are down, financials, builders. Some prosper, some suffer, some are unaffected. 6 Employment is a lagging indicator. 7 Those who have the cash to speculate in the market may well both be relatively unaffected, traders in on a short term basis, and there is a selection bias operating in favour of being positive - anything else is unpatriotic. 8. The fed opened its facilities to non banks to provide cheap money to stop forced selling on margin calls on the highly leveraged.
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