November 26, 2009

US economy showing signs of recovery

Richard Berner from Morgan Stanley takes a positive but bumpy outlook
In our view, the reversal of those systemic shocks is now promoting recovery, and renewed gloom about the economy and concerns about an intensifying credit crunch are overdone.
Recovery will flow through to all sectors;
As growth in bank earnings accumulates, and banks repay those loans, the excess liquidity will likely translate into securities purchases and loan growth.