OT Roubini -- thanks for your thoughts.
I would say this rally has gotten long in the tooth too. I believe it is being driven my large amounts of cash on the sidelines that can't get good returns in bonds right now so its going into equities...and using the quasi-positive economic data as a rational to put this money to work. I believe we need to consoldidate/retrace for a while (20+%) until the economy can further work through these major banking and credit issues, unemployment and underwater homeowners. imo, the government has/is pumping out an enormous amount of money already in the capital markets, as well as the Fed lowering rates to near zero. Just pumping more money into the economy isn't going to resolve the financial issues still persistant. In fact, it could cause a false boost to the economy that has no legs (not creating sustainable jobs), and will end in a more prolonged recession once the government money dries up and interest rates go much higher due to overprinting of dollars. I believe we could even face 3-5 years of subpar low growth until we can work off these issues. We do need innovation and creation of new types of jobs and businesses.....that's always been the key part of the US that has given us prosperity. The renewable energy projects on land and newer ones to come offshore coasts (hydrokinetic wave, wind, and currents) are just one sector that could move us into recovery and reducing reliance on fossil fuels. Job growth is critical to being able to service our large and growing national debt.