The big bull market has run its course, says Bill Bonner

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In an exclusive interview with CNBC-TV18, Bill Bonner, President & Founder, Agora Inc and the author the famous The Daily Reckoning, speaks about the global markets and gives his outlook going forward.

Here is a verbatim transcript of the exclusive interview with Bill Bonner on CNBC-TV18. Also watch the accompanying video.

Q: What is it looking like globally a big bull market in equities which has started again or the jury is out on that?

A: I think the big bull market has run its course. You really have got to go a along way back to try to understand what is going around in the world markets. The world markets have been dominated by the extreme consumer spending from mainly America, but Britain as well. That trend got started many-many years ago, 50 years ago when the modern economist led by John Maynard Kenyes came to the conclusion that consumer spending was the source, it was the foundation, it was the reason that economies prosper, so they pushed consumer spending. Well that trend lasted for 50 years. And in the 50 years, consumer spending, consumer credit and finally debt rose particularly in Britain and America to levels that couldn't be sustained. So that crash happened in 2007 and since then we are in a period of deleveraging. It is a period of deleveraging particularly in those Anglo Saxon economies. Following that crash we had a massive response by governments all over the world and mainly by China and America which are the two big players in this drama. What we are seeing in the markets today is a response to all that hot money pushed into the system by the governments. It is not a sustainable bull market, it's merely a bounce from the bear market that started a long time ago.