Looks like it could.
I am not an economist or a trader but it looks like a combination of things is at work here.
1. Geitner finally announced a plan to deal with banks toxic assets. It's essentially the same plan that Paulson started out with last year. The fact that they found it unworkable then should give people pause but Geitner is supposed to be a super-genius so I will cut him some slack for now.
2. Home sales made an unexpected upswing.
3. Unemployment has slowed.
4. The castigation of bank executives has eased a bit
5. There is just a lot less uncertainty in general.
There have been a couple rough patches too. The market definitely does not like Obama's budget. They also didn't seem to like Geitner's proposal that the government be allowed to seize any business it deems to be failing. Neither do I honestly. That is just a recipe for abuse and honestly it is right out of the Nazi / Ba'ath playbook, not that I am calling anyone in the Obama administration a Nazi, just pointing out how such powers can be abused.
Overall I am relatively optimistic about the economy at this point, that may change depending on the final budget that comes out of congress and the administrations future behavior.
(speaking of Nazism - does anyone else find it creepy that Obamanauts are out knocking on peoples doors to put pressure on congress. I can't think of the last time this has happened (never?) but it does smack of intimidation of the first order.)
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