Daily Archives: November 11, 2011

A Precarious Optimism

The euro crisis is no garden variety hazard for the financial system, or even the global economy, but market sentiment in the U.S. seems to be holding up quite well in the face of the latest round of the ill winds via Italy.Yesterday’s rally in stocks is one inspiring data point. Another is the staying power of inflation expectations via the yield spread on the 10-year Treasury less its inflation-indexed counterpart. It could all evaporate in the twinkling of an eye, but for now there’s a view that the glass is still half full in these United States.

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