Market is falling like crazy, and I am buying shares

Yes, I am buying shares at this moment, as the Hang Seng just drops another 1000 points. You can call me crazy, but here's why:

1. Blood in the streets as captured by newspaper headlines. Traditionally, they have been the clearest indication of the best time to buy shares, when newspaper headline scream "S'pore among worst hit as markets dive again".

2. Earnings in corporate America remain strong.

3. The government got what Wall Street wanted: a big increase in its spending limit.

4. The Federal Reserve, according to Michael Lombardi, is getting ready to come out with some new form of QE3.

5. I don't forsee the US going into double dip recession.

It is therefore my belief that although the stock market is likely to be choppy and reactionary over the very near term, this is part of a bottoming process, setting the stage for a new stock market rally.