Hedge fund legend Stan Druckenmiller is out sounding the alarm that the current economic backdrop does not warrant the Federal Reserve maintaining highly accomodative policies including ZIRP:
“I feel more like it was in ’04 when every bone in my body said this is a bad risk/reward, but I can’t figure out how it’s going to end. I just know it’s going to end badly, and a year and a half later we figure out it was housing and subprime. I feel the same way now.”
Meanwhile, the increase in total world equity market valuation since the 2009 bottom is unprecedented:
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