Somebody, soon, is going to be wrong

In one corner we have Nouriel Roubini. "This is the beginning of a massive market fall after a period of excessive liquidity, bubbles in many assets and markets and underpricing of risk. All sorts of risky assets will be persistently under pressure."

In the other corner we have Business Week's most recent cover story. "But a stronger case can be made that Feb. 27 will turn out to be more of a tremor than an earthquake. Notably, U.S. indexes gained on Feb. 28. That's in part because powerful forces are undergirding stocks now in a way they weren't in earlier bear markets."

And my old boss, Ed Leamer (as of last December). "UCLA Forecast director Edward Leamer states that a recession is not on the immediate horizon for the U.S. economy. Leamer admits that some economic models that emphasize historical data are producing recession forecasts, but he believes that conditions today are significantly different than those that led up to past recessions and thus concludes that a national recession is not imminent."

Comments

[MTGlass]

Ah, the immortal words: "It's different this time."