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Recovery Delusion

August 14, 2009

The Road Ahead For The Global Economy | www.forbes.com

Economic recovery is not about to come soon. Recent indications of a turnaround in the economy should not be considered permanent, as they mainly result from hugely increased government spending. Long term changes in the savings rate of the US economy point towards a necessary structural type of adjustment before growth and full employment are restored. In addition, limited financing availability resulting from the financial crisis will not change in the short run, further restraining activity.

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