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Why does the Dow Jones Industrial keep rising in a deep recession?

Unemployment is rising even higher and foreclosures are increasing. I can't understand why the Dow is now rapidly approaching 9000. Where are the people getting money to invest in the stock market if they don't have a home or a job?

Public Comments

1. The homeless or unemployed never dabbled in the stock market. I am an average person with a 9-5 job, but my employer offers a 401K and I have the option of moving my money from one fund to another. One of the funds is sort of like a savings account, it earns a minimal interest, but it will not lose value. That is where my money has been for about 6 months, now I am moving it into another fund that is tied to the SP500. If more people like me are doing this, it might have a little to do with the market rising.
2. It is not "people" that move the market. It is Big Money. The market is forward-looking 6-9 months. If we see a continued upward trend through FYQ3, then we'll know. If not, then it is a sucker's rally.
3. It means the recession is coming to an end.
4. The market looks at trends. Indicators show that the bottom has been reached and we can start looking towards a recovery. Unemployment is a statistic that always lags. Companies are loathe to add to the payroll until they have to, so hiring tends to trail recovery by a few months. Foreclosures are going to continue to be a factor, but new housing starts are rising and sales of existing homes are going up. both very positive indicators. Yes, most of these sales are "fire sale" level stuff, but they get money moving again which is what we need.