The Next Bear Market May Have Already Begun…

Posted by Bill Bonner - Diary of a Rogue Economistogue Economist

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Why losing buying power is a worthy goal for a nation’s money has never been fully explained. Nor has it been demonstrated – either in practice or in Ph.D. theses – that buying crummy debts from banks at above-market prices (aka QE) is an effective way to boost consumer prices.

But investors – used to rising stock prices under the Fed’s QE – responded to Draghi’s words like a fat trout to a wiggly worm.

The Dow rose 370 points on Friday… a more than 2% gain.