Roubini's Read: Has Dr. Doom Capitulated?

The explanation for yesterday afternoon's rally was obvious: Nouriel Roubini, economist, professor and lead Cassandra of the housing/credit crisis and recession, had donned rose-colored glasses. Reuters reported that Roubini said "the worst of the turmoil has passed."

Hooray! If Dr. Doom says we're done, then the path is clear, right? Not so fast--Roubini quickly followed up that report with this statement: "It has been widely reported today that I have stated that the recession will be over 'this year' and that I have 'improved' my economic outlook. Despite those reports ... my views expressed today are no different than the views I have expressed previously. If anything my views were taken out of context."

Harrumph! So we're not done yet?

I appeared with Lakshman Achutan, Managing Director of the Economic Cycle Research Institute, on CNN American Morning to discuss where we are and what to expect going forward. Although Lakshman is a bit rosier than I, we agreed that the economy no longer feels like it's abutting the abyss. That said, I can't underscore enough how the bottom in the economy is not a place--it's a process that is likely to continue for months.