All the central banks are inflating the money supply in as best of unison as possible. If I'm not mistaken, the amount of money in our system has... what was it?... tripled? in the past 10 years (Hectupled in the past 20!). In a more sharp contrast, They doubled the money supply in under a year - we're still waiting for this massive money bomb to have its effects.
Banks understand that this is horribly dangerous, and, because they have massive debts right now, they aren't loaning the money that they got from the Fed. But they'll start lending it out eventually! And what does that mean? It means that you'll have 3-6 times as much money to buy the things you like... which means prices are going to triple-hectuple!!
What does it mean to have a 0% interest rate? It means that you are literally handing money away to people; it means that money HAS no value; it is the exact equivalent of handing a stranger money (that fell from the sky) and telling him that he never has to pay you back.
Why is the dow surging? IT ISN'T!! You're seeing the DOLLAR value of things rise -- but all that this means is that money is worth less than it used to. 1 ounce of gold cost 300 bucks 10 years ago... now it's quadrupled to over 1300. 1 dollar used to buy you 120 yen (that was just 2 years ago), now it only buys you 81.
Evan is right. The surge in stocks is related to a weakening dollar caused by quantitative easing. This is not necessarily a bad thing for America, since it is means we can export more and create more jobs. A weak dollar has the added benefit of creating inflation in China. Eventually they will have to float their currency.