azizonomics.com / By John Aziz / January 22, 2013
Uber-bullishness is the order of the day in the markets. Last week I noted that the DJIA has climbed to a new post-2007 high. And now, the “fear index” VIX is hitting all-time lows:
Popular commentators like Bill McBride are declaring the era of crisis to be almost over:
It looks like economic growth will pickup over the next few years. I’ve written about this before – a combination of growth in the key housing sector, a significant amount of household deleveraging behind us, the end of the drag from state and local government layoffs (four years of austerity nearing the end), some loosening of household credit, and the Fed staying accommodative (with a 7.8% unemployment rate and inflation below the Fed’s target, the Fed will remain accommodative).