Contrary indicators everywhere it seems:
(I pulled this info from various articles recently)(Let's see if these Gods of market timing will continue to have their day in the sun. :)
George Soros just said last week: "It is inevitable that Europe will be back in recession by next year."
Paul Krugman, winner of the Nobel Prize for Economics in 2008, who provided a timely warning in advance of the 2008-2009 recession, warned of a next recession in a New York Times column this week. Krugman wrote, “Suddenly creating jobs is out, condemning deficits is in. Many economists, myself included, regard this turn to austerity as a huge mistake. It raises memories of 1937, when FDR’s premature attempt to balance the budget plunged the recovering economy back into severe recession. . . . . Economic policy around the world has taken a major wrong turn and the odds of a prolonged economic slump are rising by the day.”
Bernanke, while still forecasting the U.S. economy will continue to grow “at a moderate pace”, said for the first time last week that he “does not rule out the possibility of a double-dip recession.”
Warren Buffett says a “terrible problem” lies just ahead for municipal bonds, that with plunged real estate values and high unemployment, too many cities and towns are just not able to collect enough in taxes and fees to handle expenditures and also make payments on their bonds.
Meredith Whitney, a prominent bank analyst at Oppenheimer in 2007, became famous with her accurate bearish call on Citigroup in October, 2007 said in a recent interview, “I have the strongest conviction that there’s going to be a double-dip in housing.”
I love it. A bear makes the cover of Businessweek.
