Indeed and Yellen's dovish comments only encourage more speculation in the markets. And it's not just stocks, it's RE too. RE brokers in Seattle brag about selling houses for 100K over the asking price and proclaim that $500k townhouses are cheap. And it's true in China as well (see below). The CBs cannot afford to allow the bubbles to pop, so they continue to support them as they grow ever larger. When they do burst, it will be one for the record books.
Yellen's testimony: Georgia Senator David Purdue: “Thank you for being here and for your service. I just have two quick questions. I’m very concerned about global debt. The Institute of International Finance recently reported that their estimate of total global debt is $217 trillion, or more than 300% of global GDP. Do you agree with that?”
China's RE bubble : ‘The harder the government tries to control the market, the more prices will rise,’ Mr. Pei said. With each new policy intended to restrict home purchases, buyers are piling in. Stressed about the prospect of being left behind, many are borrowing heavily, believing prices will continue to rise... Another article of faith is that the Communist Party won’t allow housing prices to collapse.”