Uh Oh, MS's Roach Is Not All Doom & Gloom Anymore

Now that we are experiencing undeniably robust economic prosperity in the US, Morgan Stanley's Chief Economist, Mr. Grumpy Himself, is getting more positive. My first reaction is, "Great, now that we are entering year 4 of economic expansion, soaring stock prices, soaring commodity prices, robust productivity, wage growth and low unemployment, Roach is calling some upside." If that is the type of advice and analysis Morgan Stanley's clients are getting, it is no wonder the firm has been losing ground. Most Wall Streeters with his record would have been removed to the safe house ages ago.

The most hilarious thing about Roach's change of heart is the reason behind it. No joking, it's the International Monetary Fund. Now that they have decided to tackle "global imbalances" the dark skies are clearing says Roach. Yes indeed, thank heavens that the C-student bureaucracy at a multi-lateral government agency with a terrible record of intervention is going to start tackling problems that have heretofore not inhibited global growth.

I noted the new IMF mission here.