Thread by @DougKass

Today's opening missive on @realmoney lengthy so I wanted to repeat my market comments lodged at the end of the column realmoney.thestreet.com/dougs-daily-di… :

"To sum it up, for the last 12 years the global economies have been on life support as central banks have slashed interest rates

and infused massive doses of liquidity into their economies and into the markets.
The consequences of this largesse have been mostly positive but there are negative consequences as well, such as sustaining zombie companies and encouraging speculation come to mind.

Stock prices and multiples are a function of confidence, economic/profit growth rates and interest rates. So, a worldwide economy that cannot naturally deliver organic growth unless fiscal policy is super-expansive and central bankers are uber-active and cannot easily get out

of quantitative easing (QE) or heavy spending without untold damage, should at some point result in a reset lower in valuations.
While the Fed and others have adopted questionable policies, the accumulation of undisciplined fiscal policy -- as seen in ever-growing deficits and

debt loads in both the private and public sectors -- also argue in favor of reduced confidence in the future and lower growth.
Interest rates are clearly driving our markets. If rates belong and remain near zero (where they are now), stock market returns will likely be

restrained given elevated multiples because growth will remain subpar relative to past cycles. This is the message of zero or negative interest rates around the world, as the cost and availability of capital is no longer restraining growth (as other secular factors are)."

The Fed is now "pushing on a string." @jimcramer @tomkeene @SquawkCNBC @MelissaLeeCNBC @ScottWapnerCNBC @cnbcfastmoney @riskreversal @terranovajoe @guyadami @saraeisen @carlquintanilla @threadreaderapp unroll