You really have to wonder what planet investors are on. Bloomberg reports that 61% of investors say the world economy is on the mend and give Federal Reserve chief Ben Bernanke top marks for combating the worst financial crisis since the Great Depression. Similarly, The Wall Street Journal has picked up on Bernanke's address to Congress and highlighted his line that Fed policies had done the ground work for a recovery next year.

Pity no one actually studied the speech itself. In that address, Bernanke seemed to be saying the recovery will be slow and hard, and won't actually feel like a recovery at all. "The recovery is expected to be Gradual in 2010, with some acceleration in activity in 2011. Although the unemployment rate is projected to peak at the end of this year, the projected declines in 2010 and 2011 would still leave unemployment well above FOMC participants' views of the longer-run sustainable rate."

In other words, unemployment will stay high for at least the next two years and financial conditions will remain stressed. This is in keeping with Nouriel Roubini's views, outlined in yesterday's blog, that the recovery is going to be very ugly.

Anyone who believes the slump is over is kidding themselves.