Good post from the Ramsey Report ala "The Big Picture" blog this afternoon:

"We’re all technicians now!’ Stocks again are so divorced from reality and economic fundamentals that investors must be technicians in order to capture upside and avoid the inevitable recoupling with economic and financial reality…Remember the last recoupling of a few quarters ago?

Please recall the Goldman CFO, David Viniar, warned in early February 2008 that there is a “total disconnect between the equities market and the credit market.” [King Report 2/7/2008] We are now witnessing a historic disparity between stocks and GDP as well as employment. The autumn is going to be very, very interesting.

Globe & Mail: Stocks surged Thursday morning when the Bank of Canada said it has seen signs that the US economic recession has reached its bottom. We don’t recall the Bank forecasting the economic collapse last year."

I too had to chuckle on the Bank of Canada forecast of recovery this week. Not only did they not forecast our recession in Canada, 6 months ago they were still assuring us Canada would decouple and enjoy solid growth for 2009. Oops! Read the whole article here.