9:12 (Dow Jones) Granted, they have different jobs, but the difference in
opinion out of two Morgan Stanley bigwigs seems to be growing. The company's
global strategist, the formerly bearish Barton Biggs, says the U.S. stock
market has demonstrated on many occasions the ability to heal itself. The world
economy is in gradual recovery that will not be derailed by the turbulence,
equity markets are bottoming, and stocks should be bought, not sold. Enter the
company's well-respected economist, Stephen Roach, who says corporate America
could be forced to bite the bullet on the disclosure of earnings distortion,
which could accelerate much of the cost cutting that is still being deferred.
Such cost cutting would entail another managerial shakeout, sufficient to boost
unemployment toward 7%. That would trigger heightened concerns of job
insecurity, enough to derail a vulnerable American consumer and spark another
dip. (TG) |
