http://davidstockmanscontracorner.com/wall-street-r-i-p-the-bubble-is-dying-at-the-zero-bound/
…At length, however, even the monetary politburo will run out of excuses and deceptions. When the juice stops and the last machines go quiet, of course, there will be pandemonium in the casino, and here’s why. The Great Financial Bubble dying at the zero bound has been inflating with just three interruptions——1987, 2000 and 2008-09—for the last 33 years. As a result, the market value of stocks, bonds and other debts have simply become decoupled from national income.
At 2X GDP in 1981, the financial market was valued at its multi-decade trend level. Since then, the market value of corporate equities has risen 17X and debt outstanding is up by 20X.
Accordingly, financial markets today are capitalized at 5X national income. That’s an elephantine bubble by any other name. And that’s why market spasms like yesterday’s 15-minute rip do indeed signify that monetary rigor mortis is rapidly setting in.