We think Credit Crisis II or Credit Crisis 2.0 has a much nicer ring to it than "W recovery" or some other charting nonsense. (We're partial to the "M recovery"). Whatever we call it, we may get the chance to revisit old themes. Everything new is old and suchlike. Or so says Reuters:
The global financial crisis may morph into a second, equally virulent phase where borrowing costs rise again, hobbling an embryonic economic recovery, debilitating cash-strapped banks, and punishing investors all over again.
Early warnings signs of this scenario include surging government bond yields, a slumping U.S. dollar, and the fading of the bear market rally in U.S. stocks.
The reality is that the United States has quite a bit of housecleaning still to do. High beta stock rallies spur "green shoots" talk, but trad-weeds will grow anywhere for a time, but have no real staying power.
Rising U.S. bond yields may spark Credit Crisis II [Reuters]