OK, this is from the WSJ's opinion page... But still, I think they may actually be correct. A few days back, after the unemployment numbers were released, I sort of guessed the Fed would revert back toward more expansionary policy, and went "all-in" again in the stock market. Turned out to be a lucky bet. No bets on next week tho', given the perilous inflation-fighter we've got at the helm of the Fed...
Although correlation is not causality, whether it's wrong or not, I've come around to the view that this recession will end when Ben Bernanke says it will end. And it has gone on for 18 months now b/c Ben Bernanke has done too little. Perhaps now he's on the right path?
Paul Krugman: Cruelty, Incompetence and Lies
2 minutes ago