Backpedaling Time for Bears

A leopard can't change his spots, or so the adage runs, but there's nothing to stop a bear from trading in his claws.

Some observers who have long been preaching caution are now doing just that. Take, for example, Nouriel Roubini, one of the most bearish market watchers. "My view is currently that the probability of an outright recession is somewhat reduced," he said last week.

Roubini's new view stands in contrast to comments he made during an interview on TheStreet.com TV in October when he forecast a year-long recession in 2007. At the time, he thought the pullback would be deeper and more protracted than 2001 slowdown. ...