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Friday, June 12, 2009

Blackrock's Fink: "We are in the midst of a recovery..."

BlackRock's (BLK) CEO Laurence Fink says the US economy is in the midst of recovery. His firm put their money where their mouth is and gobbled up Barclays Global Investors for $13.5 billion on Friday according to a Bloomberg report.

"We’re at a point where there’s much greater stability," Fink said. "People are now starting to ask, 'Maybe I can earn more than zero?' We’re starting to see clients starting to move out, in terms of investing in credit, and we’ve seen a re- stabilization in equities."

Throughout the week additional reports showed a resurgence in hiring practices at major corporations while the government reported that initial claims for unemployment continue to fall.

On Friday the Michigan consumer confidence index registered it's highest level in 9 months and the Nikkei 225 stock barometer finally smashed through the 10,000 mark -- a level not seen since early October of 2008.

"Armageddon is behind us," Fink said.

Perhaps the last 8 months of dire commentary on the US economy has been overblown?


  1. GNE,

    I've seen some forecasts for a "double-dip" recesssion. I assume it's based on a theory that when taxes are raised to deal with the budget deficits and increased government spending, growth will go negative again for some time. What do you think?

  2. I don't buy the double dip theory. The evidence and data is much more robust around a V-shaped recovery...



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