Economist John Hussman says Wall Street just doesn't get it. The improvements in the economy have all come from government stimulus, not from genuine growth.

“Among the fascinating aspects of the recent economic ‘recovery,’ probably the greatest is the failure of analysts to understand that this growth is none of the private sector's doing,” Hussman writes in a note to investors.

"Wall Street's is seeing ‘legs’ where the economy is in fact walking on nothing but crutches."

To the contrary, widening credit spreads, moderate or flat yield curves on Treasuries, falling stock prices and low employment growth all point to continued and probably worsening recession, Hussman notes.

Hussman also says he’s appalled that Fed Chair Ben Bernanke can keep a straight face while claiming that many of the "investments" made by the Fed have been repaid "and some have even made a profit."

Such assertions overlook the fact that “the two primary sources of these repayments have been, directly or indirectly, the U.S. Treasury, and savers who are receiving near-zero interest on bank deposit instruments," Hussman observes.

St. Louis Fed President James Bullard says Europe’s debt crisis shouldn’t postpone the Federal Reserve from raising the benchmark interest rate, Bloomberg Business Week reports.

“Unless events in Europe turn out to be much worse, I think that in the near term, the U.S. is probably a beneficiary of the crisis in Europe” because of lower Treasury yields and cheaper commodities, Bullard said.