The Invisible Hand Of Markets Is Handcuffed To QE-Infinity... There Will Be Consequences

ZeroHedge
I’m interested in how the real economic outlook unfolds. What will that mean for markets?
It will be kind of ironic if the current rally proves a bear bounce and stocks now tumble just as we see the exit signs. 
The outlook for markets remains massively challenging. There is a very delicate balance underway: the market’s confidence in QE Infinity and Government fiscal support vs the real economic damage in terms of failing companies, dividend stops, rising unemployment and permanently broken supply chains. If that confidence breaks… then it’s a massive sell signal.

The risks are compounded because of how distorted and overvalued markets were before this crisis even began. The ultimate mistake of the 2008 Global Financial Crisis may yet prove to be the market price distortions caused by QE were never unwound. These have keep bond prices high, interest rates artificially how, and though cheap debt and yield tourism, kept stock prices well above where they should be. We’ve been waiting for the invisible hand of markets to correct the imbalances for years – but they never did. The invisible hand of markets is handcuffed to QE Infinity!