Diverging Like It's 1929 – Doug Noland, Prudent Bear

Diverging Like It's 1929 – Doug Noland, Prudent Bear

With the financial world fixated on Draghi, Bernanke and endless QE, global markets now wildly diverge from economic fundamentals.  Many are content to celebrate, holding firm to the view that financial conditions tend to lead economic activity.  Markets discount the future, of course.  And, traditionally, an easing of monetary policy would loosen Credit and financial conditions - spurring lending, spending, investing and stronger economic activity.