What's happening now and how should we counter it?

There is a lot of speculation in the media about the recession coming to an end, and even the central bank has started to eco this line. Personally, my view was that consumer spending for one time large ticket discretionary spending, such as a car or kitchen remodel, would raise as a result of the stimulus and the tax rebates in April. Things do seem to be lighting up. We need to counter this perception that things are getting better if we believe they are only going to get "much worse".

My chief suggestions are to discredit both Bernanke and Krugman with their predictions before the crisis (which has already been posted on the C4L website) and then to offer an explanation as to why things seem to have moderated in the financial sector lately. Have the central bankers managed to replace the housing bubble with a newer and larger bubble, like Krugman advised Greenspan to do in 2002 with the Nasdaq bubble?

The attention span of the country on the central bank and the political class will only stay fixated so long as there are problems. Once the problems seem to go away, (even if they don't), the glass becomes foggy.