It baffles me. The US unemployment rate hits 10.2%, worse than the expected 9.9%. And guess what? The stock markets around the world rally for the second day in a row. What is going on? Has the investor gone mad?

The people have to realize that, more and more consumers are becoming jobless. Consumer spending will reduce. Corporate revenue will reduce. And so will earnings, unless these corporates initiate another round of layoff to save on administration expenses.

Can someone enlighten me as to why the stock markets are rallying in the face of this worse than expected unemployment news?