CHICAGO (Reuters) - Larger-than-expected gains in U.S. housing prices and consumer confidence on Tuesday lent new weight to views that the economy is emerging from the longest recession since the 1930s.

U.S. single-family home prices rose for the second month in a row in June, according to a closely watched index, and consumer confidence jumped in August.

In addition, President Barack Obama nominated Ben Bernanke to a second term as chairman of the Federal Reserve, removing some niggling doubt from investors' minds. The move promised a consistent approach to monetary policy in the years ahead.

The developments helped buffer the blow of projections for the U.S. budget deficit to reach its highest level in 2009, relative to the total economy, since World War Two.

Most people are wrong, when most people agree on something, things might change again, to their surprise.

When most analysts were bearish about the market in early 2009, they were proven wrong when the markets actually bottomed and went up. In recent weeks, most analysts now changed their view to that "we are heading into a V shape economic recovery", can they be wrong again?

There is still possibility of a W shape economic recovery (up, down and up) instead of V shape economic recovery (down and up).

Below is an article by Mr Tan Kee Wee, who warns that there might be a next wave of Tsunami.

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