What? No Recession?

All of a sudden, the mood of the markets has changed. The "fact" that we are or about to fall in the worst recession since the thirties has been forgotten and we are in a "recovery".

“We can skirt a recession,” said Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ Ltd. “But if headlines worsen in Europe and cause a major stock-market rout, it could lead to a loss of confidence here on the part of businesses and consumers and make forecasts for a recession a reality.”

Incredibly, it all depends on the headlines in Europe. Reality is illusion, illusion is reality.