Bailout

Measured using our favorite valuation technique, Professor Shiller's cyclically adjusted PE analysis, the S&P 500 has a PE of 22X. The long-term average (1880-2010) is about 16X. The current level is actually close to the big bull market peaks of the past--with the exception of the gigantic one that peaked in 2000.

Greece capitulated ... took an important step towards a bail-out from its eurozone partners and the International Monetary Fund as it formally sought ?consultations? over a ?30bn-plus ($40bn, £26bn) loan package to stave off default.

... Greece?s finance minister, George Papaconstantinou, said Athens wanted to discuss ?a multi-year economic policy programme with the Commission, the European Central Bank and the International Monetary Fund?.
excerpt with permission

Historically, recoveries have been proportional to the recessions -- severe recessions have strong recoveries and mild recessions have weak recoveries. So far the recovery in industrial production this cycle looks about average. But given the depth and severity of the recessions an average rebound is disappointing.

Full post as published by Calculated Risk on April 15, 2010 (boomark / email).