Central bankers make it harder to time global recovery

Asian markets have enjoyed something of a rally during the first quarter of 2012, but our readers are unconvinced. In last week’s web poll, most respondents said they are “not confident” that the global economy is on a path to recovery.

It is perhaps not surprising that few people have much faith in the rally. Massive intervention by central banks around the world during the past four years has flooded markets with liquidity and, in certain corners of the financial system, such easy money has driven prices to nonsensical levels.

According to Macquarie, Asian sovereign bonds are no longer an investment but an expense which is...