Paulson and Company is now bullish on housing...well good for him!!!

John Paulson held a conference call today with his investors and noted he was he was concerned earlier this year about a potential double-dip recession. Might you have a thought or two Mr. Bigshot regarding the millions of American's still on the unemployment lines?

"I'm not concerned about that at all today," he said. It's more likely there could be a V-shaped recovery". Of course you are not worried John, you raked in about $12 billion of net worth! House prices have stabilized and could climb 8% to 10% nationwide in 2011". Do you know for a fact John, that there is no "shadow inventory"?

After sipping more kool-aid, he stated that corporate earnings are coming in ahead of expectations, the stock market is stronger and there's a "vibrant" credit market. With the "final leg" of a rising housing market, "the outlook for 2011 could be very strong".  

He confidently announced that Greece's problems are much better understood now and are being dealt with. Much better understood????

He also stated that Paulson and Company covered, or closed, many of its short positions recently and that showed up in stronger returns in April, the fund manager noted. The firm has been "much more aggressive" in positioning its Advantage funds to "participate in a stronger economic recovery".

John is also bullish about credit markets and said he isn't worried about the massive amount of corporate debt that needs to be refinanced in the next three years or so. "That is a concern to some investors. It's not at all a concern to me," he said. "There's so much demand for debt." Whenever debt matures, lenders get cash back that has to be redeployed and that drives demand, he explained. There's a "voracious appetite for credit," Paulson commented, noting that offerings are "vastly" oversubscribed.

Companies beating expectations is a surprise? Analysts play the same games as you John, of course companies beat expectations. It appears as though you would have us believe the banks have marked their book to a realistic market value. Oh wait, they do not have to thanks to the lobbying efforts of Wall Street on Congress and then Congress taking the 2x4 to FASB.

Was turning bullish a condition of the SEC not bringing charges against Paulson and Company? You bet against the housing market and shorted banks and now all is well with the credit markets and housing is in a "V" shaped recovery. You are a classic manipulative Wall Street thug Paulson.

For some strange reason, grandpa suspects you may have an ulterior motive. What goes around...