Paul Krugman sees the recession ending this summer

Paul Krugman thinks the foundering economy may right itself this summer, he said in a speech today in London. Evidently, investors agree. Not long after the Nobel laureate and New York Times columnist made his prediction, stocks surged.

"I would not be surprised if the official end of the U.S. recession ends up being, in retrospect, dated sometime this summer," Krugman said in a lecture at the London School of Economics, according to Bloomberg News. "Things seem to be getting worse more slowly. There's some reason to think that we're stabilizing."