Investors 'don't stop believin' that a recovery is coming

by Jonathan Berr

.... U.S. stock markets are poised to rise Monday on -- what else? -- more positive comments from Federal Reserve Chairman Ben Bernanke. On Friday, the central banker sent stocks soaring after he was quoted as saying the economy is near a recovery. Existing home sales also posted their biggest gains in more than two years, further indication that the housing market is improving. Markets in Europe and Asia also rose.

Throwing cold water on the rally is "Dr. Doom." Writing in the Financial Times today, Nouriel Roubini said the chance of a double-dip recession is increasing because of risks related to ending global monetary and fiscal stimulus, Bloomberg News noted.

"Governments around the world have pledged about $2 trillion in stimulus measures amid the worst worldwide recession since the Great Depression," the news service said. "Federal Reserve Chairman Ben S. Bernanke and other global policy makers have cautioned that the recovery is likely to be muted, indicating they would not soon remove all the stimulus injected into the financial system." ....