Stocks have surged in recent weeks, but Commercial Mortgage Back Security spreads (among other credit indicators) remain stubbornly wide. Credit markets are not seeing the same drastic change in the economy that equity markets are. This is a credit problem. If this is anything more than a bear market rally we’d be seeing a drastic change in credit market spreads. For the bulls’ sake, they better hope spreads start improving soon or this patient is going to relapse.
Zero Hedge has a great analysis coming to the same conclusion. Must read.