Menu Close

Author: Doug Noland

Doug Noland: Market Thoughts

Especially after the recent market rally, talk of “resilient” has become commonplace and central to the bullish narrative. And this resilience – at home and abroad – is undoubtedly associated with the “buffer” created from Trillions of pandemic QE. The significant tightening of market financial conditions for the most part didn’t spark panic in corporate boardrooms.

Doug Noland’s Credit Bubble Bulletin: Putin & The Vigilantes

The main focus for the week was on a slew of central bank tightening measures. But Putin’s speech marked an alarming ratcheting up of geopolitical risk. It essentially guarantees months of Putin hardball and associated uncertainty.

And it’s unclear whether the Fed, ECB, or other central banks are prepared to abruptly shift course and orchestrate another concerted QE program to re-liquify liquidity-challenged global markets. And this is a huge issue. The world could now be in the early stage of history’s greatest globalized de-risking/deleveraging cycle – and a global central bank liquidity backstop is not a policy focus.