CurvatureI see know that ME has settled back into the 10 cent range, Curvature is back posting. Was interestingly absent after ME's brief run. But, perhaps correlation isn't causation, right?
As for unemployment dropping in the US - it is difficult to say that definitely as the commonly quoted statistics don't reflect the impact of part-time employment growing and those who have stopped searching or have been searching for a long period of time with no success. The monthly quoted statistic is known to be just a portion of true unemployment - the real number is a lot more discouraging. And, yes, while tapering is occuring, that only means the pace of monthly liquidity injection is SLOWING, but overall injection is still INCREASING. It is accepted in Canada, and America, that housing is a key component of keeping the economy afloat - raising rates too abrupdtly will just result in them slashing rates if the fallout is significant. More importantly, there is no reason to raise rates...inflation isn't getting out of hand - which is the prime directive of central banks and monetary policy. Now, Curvature has a strong point - we can't go down on rates, so there is truly only one direction to go - up. That will happen, but it will be done very slowly and cautiously unless inflation starts to run away.
It is also too easy to say companies were stupid for overpaying for assets. Overpaying is a statement of hindsight. Companies have to take risks, and all should take them knowingly, understanding the potential implications. It may not always work out, but Curvature if you invest in the markets, and lose money in any given year - some guy holding GICs could call you out for being an idiot. What will you say? Well, I don't plan on earning 2% interest, when I can take some measured risks for a potentially much larger return.....but if you lose 50% or more like many did in 2008, he can call you an idiot in hindsight, right?