dailyreckoning.com.au / By Dan Denning / January 21st, 2013
Check out the chart of America’s large cap benchmark stock index on the S&P 500. It made a five-year high on Friday in the US. (By the way, American markets are closed tonight for Martin Luther King day).
The index is not quite back to pre-GFC levels. But the question has to be asked: is it over? Is the worst behind us? Has the Fed’s war on deflation been won?
It’s not really a war on deflation. It’s a war on falling stock prices and weak economic growth driven by a vast overhang of unproductive public and private debt. And in any event, it hasn’t been won. But something is clearly happening. So what is it?