US Economy

Yesterday Obama addressed the joint session of US Congress for the first time as President with remarks that might well mark the most turbulent economic times of the modern world. Many financial analysts do not see any improvement in the next 6 to 9 months despite the 100s of billions meant to stimulate the economy, simply because it may take that long to work its way through the economy.

I am sad that I have a sense that a fairly large number of corporate CEOs and financial analysts are factoring a 3-5 years of recession. Talking of stress test to banks - is it just a test or do they have a remedial measure in place when they hear the results of the test. Bernanke is infusing some hope by saying we will be out of recession by end of this year and the stock market is not functioning on its fundamentals but of the fear and panic among investors. Remains to be seen.

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