By Simon Johnson and Peter Boone
Special to CNN
(CNN) -- Euphoria returns! Who could have guessed that Bank of America stock would rally 70 percent the week it learns the Feds are demanding new capital equal to nearly half the bank's market capitalization?
The ongoing grim news -- on rising unemployment, continued (albeit slower) economic decline, and ordinary working Americans being hammered on all sides -- is being ignored by stock and commodity markets. Is America now back on track for growth?
The answer to that is almost surely no. Rising stock markets don't necessarily mean a sharp recovery is under way. Consider the case of Japan in its first lost decade of the 1990s.
more in:
http://www.cnn.com/2009/POLITICS/05/08/johnson.economy/
Ruin-Nation
11 months ago
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