12m Trailing EPS Growth = Scary

This is a chart that shows a rapid deceleration in EPS growth across the three major economic zones.  The negative growth in Europe is no surprise given all of the headwinds that economic zone is facing.  If all the central bankers of the world believe in what Bernanke believes (ie the wealth effect) than we will be in another round of ZIRP which is de facto QE.  What CBs have to remember is that the credit markets are a lot bigger than the equity markets.  If people/savers aren't able to earn a decent return then we are setting the stage for one heck of a messy clean up in the next few years.  The law of unintended consequences will strike again.

Link