Why is the market rallying? Well one reason is the dollar is naturally falling as the government expands the deficit uncontrollably and prints money to buy it's own debt... The irony of Warren Buffet is that he is now an important iconic political figure in America and while advocating for the Fed to do whatever it takes to alleviate the downside of a bubble economy he also warns of the natural nasty effects of taking such action:
If the dollar falls then expect the market to continue it's unusual rally as our exports become cheaper and people flee from cash into other equities and assets. Oil will continue to rally as the dollar falls against other currencies. But if you hold cash or US bonds may Peter Schiff help you...
http://www.nytimes.com/2009/08/19/opinion/19buffett.html?_r=1&ref=opinion
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