MARKETS DO NOT ALWAYS RISE FOR POSITIVE ECONOMIC REASONS - CAUTION ADVISED!

11-30-16-mata-studies-liqudity-venezuela-zimbabwe

As the public is told day after day by mainstream media, if stock prices are up in America, it is an indication that all is well in the economy... consumers can consume, investors can invest, and producers can produce as confident citizens gorge on ever more credit (because everything is awesome).

So we wonder what the 'CNBC' of these two countries would be saying about their stock markets' massive outperformance...

Venezuela's "economy" must be roaring?

Of course the point is, it matters what the numeraire is and with Bolivars hyperinflating and ZimDollars on the verge of hyperinflating as Mugabe prints money once again, these 'markets' are merely reflecting the collapsing worth of local currency.

Meanwhile the media avoids mentioning to investors that the central banks of Japan, the EU and England are currently being forced to pump more than $200B per month into the global economies (nearly eight years after the Financial Crisis) to keep them from seizing up!  Why?

But hey, don't tell the global investing public, stocks up = good news, no matter what, right?!