Four days. Just four days. That’s how long it took for the panglossian pundits to declare that the economic destruction that has seen trillions of dollars evaporate in a mushroom cloud of debt and derivatives is rapidly coming to an end. Last week, the S&P 500 rose 10.7 percent, recovering less than 13 percent of its total decline from 1255 in September. This sharp, but very short-term rise already has long-time permabulls such as Larry Kudlow suggesting that instead of pushing back their predictions of economic recovery from mid-2009 to the end of the year, economists should be considering the possibility of GDP growth in the second quarter.
Hope springs eternal in the mouth of the financial whore whose income is derived from market churn.