Why is everyone so bearish on credit markets, economy?
— Posted Wednesday, 13 December 2006 | Digg This Article “Jobs data support Bernankes optimism” read the headline from this weekend Financial Times. The article was referring to the Fed chiefs hope of a “soft landing” for the U.S. economy as the job creation report recently showed employers added 132,000 new jobs to their payrolls despite a housing and auto sector slowdown. Based on the money supply and credit creation data weve talked about in recent newsletters, the economy has already landed and should see a gradual upturn over the next several months. Based on this assessment, the incessant talk among analysts of a “hard landing” versus “soft landing” is moot. Whats really interesting is how investor pessimism refuses to recede despite a relentless rise in the benchmark stock indices over the past five months. In Fridays report we mentioned that latest AAII investor sentiment poll showed continued erosion in bullish sentiment with only 39% of respondents claiming to be bullish on
