Turnaround? Don't Get Too Giddy Just Yet

Further decline still possible, they warn
By Amelia Atlas,  Newser User
Posted Apr 10, 2009 6:39 AM CDT
A pedestrian walks past the NYSE on April 2, 2009. Investors dove into stocks as global efforts to end the financial crisis fed the market's newfound optimism that the economy is on the mend.    (AP Photo/Jin Lee)
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(Newser) – Signs of an economic recovery seem to be sprouting all around, but plenty of skeptics warn against starting the celebration too early, reports the New York Times. Wall Street has been on the upswing the last two months as the credit market begins to thaw and low interest rates aid the housing market. Even banks seem to be regaining their footing. But many economists still see underlying trouble.

One of the biggest worries: jobs, and the lack of them. If unemployment continues to rise, consumer spending will likely remain stagnant and corporate profits will suffer. "I think this is all setting us up for a new low," said a top strategist for JPMorgan Chase. "It’s not like I’m praying for it to happen, but it’s pretty much expected."