With a 34% rebound in three months, the Dow Jones Industrial Average has pushed into positive territory for 2009 to 8799.26 on Friday, and one of the main reasons is disarmingly simple: Financial markets once again are awash in government cash.The Dow rose 28.34 points as money managers continued shifting funds into stocks. Still, the Dow remains down 38% from its 2007 record of 14164.53, and it had seemed to plateau in recent weeks on worries about the strength of the global recovery.But governments around the world are pumping money into the economy at a frenetic pace…Some investors have begun speaking of a “bailout bubble” being created in certain markets, and about a “melt-up” in demand fueled by the growing supply of money.
By E.S. Browning, June 13, 2009, WSJ

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