very good answers to this question.qe in itself doesn't make stk prices rises but mentally it does
the truth as several posters said the reason the economy as enver grown is it all went to the rich. wether buffett worth 40 or 60 billion means nothing as he never spends it. but if you gave the avg American 10k a yr it would be spent and make the economy do well. as another note said eventually the pumpers will tire of this and take there marbles off the table and the mkt will collapse as fundamentally its 40% over valued
Giving away money to people to spend on consumption doesn't work. It creates unproductive debt and dependency. Lending people money to produce and providing a healthy regulatory environment for same is what works.