1237 [Dow Jones] Analysis of the S&L crisis reveals that the recovery from today's "credit crisis" is likely to be protracted with a significant risk of a U.S. recession," says Southern Cross Equities director Charlie Aitken. Consequently, Aitken sees "no necessity" to call a bottom in financials or global equities. "We remain wary of the sustainability of the current global financial rebound, which has been basically engineered by a short squeeze and a massive short covering rally. Considering the extended duration of the recovery process for both previous crisis (S&L crisis and 1929 crash) we have trouble believing the current relief rally marks the end of the great 2008 global financial meltdown or more importantly, the bottom in global economic growth." Recommends investors use current short selling ban "get out of jail free card" to "get companies with challenged business models" out of portfolios. (DWR)
