“Good news is bad news. Bad news is good news. Up is down and backwards is forwards. Nothing is what it seems…or what it ought to be. If the economy really were doing better the Fed would have to follow through on its promise to ‘normalize’ monetary policy. That is, it would stop lending at zero interest rates and stop its $85 billion-per-month QE program. But those hocus-pocus programs – not a genuine recovery – are what keep stock prices going up. What this means is that there is no genuine recovery. It’s all the smoke of ZIRP and the mirrors of QE. When the magic show ends…so does the illusion of recovery.”
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