Monday, December 10, 2007

Morgan Stanley projects a "mild recession."

Anyone get that call? Remember last week? When this was said: "a housing recession like none ever imagined or experienced."

Now I'd expect Merrill Lynch to reign in their bearishness. The reason? Look for these four reasons in their report: 1) Christmas won't be a bust 2) Wall Street is getting a handle on the "value" and pricing of mortgages 3) Risks are priced into stocks, 4) We are re-appraising the risks to the economy commensurate with the more sanguine credit environment.

And the market's will have moved 10% since they got bearish. And without you if you listened.

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