The Tipping Point and "Good News Matches"

The Great Depression wasn't characterized by a single stock market drop. It was characterized by massive volatility, just like we are experiencing today. Up 6%, down 20%, over and over.

The economy will be down for the next decade or so, and that's all there is to it. After the Dow loses half it's value, a 6% up-tick in the market is absolutely nothing worth dwelling on.

As for your actual analysis, your three points are glib and facile. A quote from Bernanke isn't going to have any long-term effect on the market, nor will a good quarter from Citigroup. Any profits Citigroup has are on the back of the American taxpayer.

Give me billions of dollars and I'll post a profit too.