Nouriel Roubini : Financial markets have rallied since July on the hope that the global economic outlook will not worsen, or, if it does, that central banks stand ready to backstop economies and markets with additional rounds of liquidity provision and quantitative easing. So, not only has good—or better-than-expected—economic news boosted the markets, but even bad news has been good news, because it increases the probability that central-banking firefighters like U.S. Federal Reserve Chairman Ben Bernanke and European Central Bank President Mario Draghi will douse the markets with buckets of cash.
- in project syndicate
