Bond Outlook November 11 2009

We chose the expression “L-shaped” to describe the current recession many months ago. The term is now acquiring near-official status if comments by various members of the Fed are to be believed, (although “L-shaped recovery” is almost a contradiction in terms). Politicians, of course, speak a different language, still promising a “V” shaped recovery. Geithner claims that a second stimulus package is not necessary but that “a recovery that’s going to work is led by private demand”.