The DIJA crossed a line today. Somebody had better do something or else things could get out of control. Oh my gosh, what if the DIJA keeps going up, and what if the S&P 500 gets to 1300? Moreover, what if the economy keeps improving right on through 2011?
The U.S. economy is expected to have expanded by a reasonably robust 3.5 percent annual rate in the fourth quarter after expanding at a 2.6 percent pace in the July-September period.
What the heck will the celebrity economists do if they can’t sing the economic blues? I’m sorry to spend any more time on this topic, but it is just so much fun to see the ultra bears start back pedaling.
There is a global economic recovery,” said Roubini, who gained renown for predicting the crisis of 2008 and a few months ago was still warning against the possibility of a “double dip recession.” He noted that “balance sheets are strong, confidence is rising,” credit spreads have fallen and liquidity — the availability of credit — has increased. But he warned that in the U.S. and Europe, growth remained low and unemployment high, and the U.S. faced a continued real estate crisis and inspired little faith in its ability to tackle its deficit and debt. In Europe, markets have forced an austerity that endangers growth. And in an allusion to China, Roubini said there was “not enough exchange rate adjustment” and warned this could lead to “currency wars and eventually trade wars and protectionism.”
What a laugh, I must say. Dr. Doom is telling us that we are still facing “a continued real estate crisis.” Keep in mind, I told you a couple of days ago that he has used some of the bunches of dollars he makes as a celebrity economist to buy a $5 million dollar condo in New York City. NEW YORK CITY?
Now this fact does not mean we are out of the woods regarding real estate, but it is highly symbolic that the man who said just last fall that we were headed for a double dip in both the economy and the real estate market is now buying expensive real estate in one of the most expensive real estate markets in the world. I guess he’s not expecting any real estate crisis in NEW YORK CITY!
Okay, so I will leave the good doctor alone …
Anyway (now that the fun is over), the DIJA crossed the 12,000 line today, the first time since April 2008, I believe, and the S&P 500 is within a hair’s thickness of 1300. The selloff in technology seems to have abated as well, as the NASDAQ is showing strength, as it should in these days of strong corporate earnings, meaningful M&A activity, stock buybacks, increasing dividends, and huge reinvestments in technological infrastructure. So there, Dr. Doom, take that! Sorry, I just couldn’t resist …
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