Robert Reich is still bearish:
Corporate earnings are up -- mainly because companies have been cutting costs. Payrolls comprise 70 percent of most companies' costs, which means companies have been slashing jobs. In the end, this is a self-defeating strategy. If workers don't have jobs or are afraid of losing them, they won't buy, and company profits will disappear.
I have no doubt that the recovery is still fragile; but I do think it's worth noting that very few people expected a Dow 10,000 any time soon last January. Obama has done the critical - and largely overlooked - thing. He has restored confidence in the markets and the economy after what came close to a total panic and meltdown. That is not easy. It is not sufficient, but it was necessary. And he did it.
We want to hear what you think about this article. Submit a letter to the editor or write to firstname.lastname@example.org.