Roubini: Let me count the ways it was a sucker’s rally

From FT Alphaville:

...But to the nitty gritty of what every investor should have recognised in November, December and early January - d’uh, it was the much worse than expected macro news. As he explains:

The drumbeat of terrible — and worse than expected - macro news and earnings news and financial news has finally taken a toll on the delusional market belief that the worst was over for financial markets and for equity markets and that the US and global economy would recover in the second half of 2009....

...As he puts it (our emphasis):

Our research at RGE Monitor suggests that the US and global recession will continue at least all the way until Q4 of 2009 (a nasty 24 months U-shaped recession) and that the recovery in 2010-11 will be very weak with growth in the 1% range that is well below a potential of 2.75%. And we cannot rule out that a more severe L-shaped stag-deflation (as in Japan in the 1990s) will take hold....MORE