S&P and the NASDAQ made new record highs

Stock market continues to ignore all the bad news about the economy

Bad news is not being ignored in the foreign exchange markets

Negative economic news is buoying the stock market because it removes fear of interest rate hikes

Weak economy means more cheap money which means higher stock prices

Oil prices hitting highest prices of the year

Gold is back above the 1200 level

April PMI Manufacturing Flash Index at 54.2 biggest miss ever

New Home Sales tumbled by 11.1% - biggest drop since July of 2013

March Durable Goods slight bump based on military aircraft, but less transportation, the index unexpectedly declined .2%

Durable good orders, less defense and transportation dropped for the 7th consecutive month

April Service Sector PMI missed lowest expectations at 57.8 - the biggest miss ever

Dallas Fed Manufacturing Survey - recorded significant drop at -16; biggest losing streak ever

There will be a delayed reaction from the market to first quarter's bad economic news on top of this quarter's economic news

A Boston Fed official is considering retaining "balance sheet tools", i.e. QE

In other words, the Fed is considering not having an exit strategy - because it can't exit

We have done all sorts of crazy things that we never would have done but for zero percent interest rates and QE

A market that was built for 0% interest rates can't handle 2% interest rates

The product of all this stimulus will be big increases in prices, and the Central Banks are setting the stage for higher inflation

Declining Swiss consumer prices are described as "dangerous"

Currently, the Swiss consumers are enjoying lower prices and do not need a government "cure"

The law of supply and demand is so simple that only an economist would fail to understand it

Keynesians will spin ever-conflicting news to support their theory

Fitch has downgraded Japanese government debt to A- because or the Japan's deteriorating fiscal condition

Based on that logic, why is the U.S. AAA?

There is a general fear of downgrading U.S. debt, based on fines levied against the S&P

The real problem will be the collapse of the dollar, which means the debt will be repaid in dollars without purchasing power