Tuesday, August 18, 2009

The 'recession is over' news bits keep popping

Unavoidable reality - many say recession is over, but economic woos remain.

Global recession over, but will leave scars: IMF
The global recession is over and a recovery has begun, Olivier Blanchard, the top economist for the International Monetary Fund, said Tuesday. "The turnaround will not be simple," Blancard wrote in an article released by the IMF. "The crisis has left deep scars, which will affect both supply and demand for many years to come." Growth is coming for most countries, he said, but it won't be strong enough to reduce unemployment for a while. Potential output may have been permanently reduced. Growth is still highly dependent on government stimulus from fiscal and monetary policies. Sustaining growth "will require delicate rebalancing acts, both within and across countries," he said


Sample 'reader response' on market watch:
Are you freaking crazy???????? What are you people ON???"


I'm not sure people understand the meaning of the word recession, and are simply being emotional. Investors should note that the 'recession is over' statements are happening just around the same time as we've crossed the 200 DMA in the stocks market - Is this the mother of all buy signal - coming at the end of a massive 50% plus rally?

Cheers!

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