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Investors Have a Short Memory and Just Follow the Herd?

In the beginner of August the markets were so bad that most North American markets lost all their value they gained in one year over less than 10 days!

Europe had and still has significant problems and one country after another is having high debt to GDP ratio and are downgraded. US has had its own problems and it still has them with it's over 14.3 Trillion dollar debt increasing and its new credit rating of AA+ with negative outlook from S&P.

Now the investors that sold their assets have forgotten all of these with Fed Chairman (Ben Bernanke) speech that all is OK and we "have tools" to fix the issue? Does one man control the whole world market and whatever he says everyone should believe?

We still have significant problems that are not fixed and are getting bad by the day such as increasing debt to GDP ratio of many major countries and high unemployment rate and lost confidence of the consumers and job seekers.

Remember US has accumulated over $4Trillion dollar debt under 3 years and it has not improved the economy and if we hit another recession the US doesn't have any more bullets left to save the economy since it is more in debt and with higher unemployment rate than 2008!

Some say we never recovered properly from 2007 downturn and it is only china and emerging markets that are running the wheel on the global economy.

So why are all the investors jumping back to pickup stocks when they know a big rock is going to hit them soon?
 

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.