Bottom line, YES.
The sole reason for the recent upshift in the market, are the "unexpected profits" gained by the big corporations in the second quarter, Yes, 'profits' were well above what was predicted and expected during this period.
This was NOT due to consumer confidence, people have not been out spending their money and buying things, quite the opposite.
The only thing driving these so called 'profits' is mainly 'Payroll Reduction' and other less effective measures. How many of you have had your working hours cut, or know of others who have been layed off or had to take pay cuts in order to keep jobs?
There are TWO big problems with this situation.
FIRST, these gains are finite, not sustainable at all, sooner, rather than later, the bottom will fall out of the balance sheets of these companies, failure is certain.
SECOND, when people earn less, they tend to spend very little and hold onto 'ready cash', so less is deposited in banks. There are a host of other unintended consiquences which could follow. Saving money by cutting wages and expenses, and then calling it a 'profit' is pure failure, plain and simple.
People aren't eating out as much, there are more empty stores at the malls, the aisles in supermarkets seem wider than before, shopping baskets are not being loaded with expensive food items.
The great Wall St.'Ponzi scheme', is being exposed for what it is, and within weeks or maybe months, it will collapse, no doubts or speculation needed.