If there’s one consistent reaction the public has to the stock market these days it is confusion. Whether bull or bear, people watching the stock market over the past three months can hardly believe their eyes. Most of them are thrilled, of course, since the so-called market seems to be virtually printing money, even in the face of horrible economic and social problems, but hardly anyone is arguing with it.

For instance, if my house in Palo Alto increased in value 5%, month in and month out, without any apparent rhyme or reason, that would be just fine by me. Would the utility of my house have increased? Would its appearance have improved? Not at all.

It would simply be worth more, and my net worth would increase, while simultaneously those who wanted to own a home in Palo Alto would be farther and farther away from their goal. The wealth disparity – – measured, in this case, in residential housing – – would be getting worse. I’d be happy. Non-home-owners would not.