David Rosenberg Provides a Counterpoint to James Grant’s New Bullishness

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David Rosenberg disagrees with James Grant’s surprising switch to bull and Grant’s recent article justifying his view.

Basically (Extreme Readers Digest version):

1. Any recovery in earnings has been well discounted far in advance of it actually occurring.
2. Grant ignores the long-run effects of the deleveraging process.
3. Grant mentioned the bigger the drop, the zippier the bounce. However, he compares this episode to the Great Depression, when it’s not even close.
4. Rosenberg questions whether government support of key industries is necessary or desirable.

Source:

http://elnuevoparquet.com/redsocial/moneymanagement/2009/09/23/is-jim-grant-the-latest-to-be-drinking-the-kool-aid/

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