StraightTalk: May 2010

Short-term indicators from The Conference Board consistently show that the economy is past the immediate rebound effects from the recession, but the door on the recession cannot be closed yet. The recovery in the cyclical indicators partly still reflects pent-up demand from the rapid adjustments that businesses around the globe made to employment, investment, and inventories during the deepest recession since World War II. This issue of StraightTalk® discusses additional strengthening headwinds, notably the accumulated deficits and debt that add to medium-term concerns. The recent upheavals in Europe are only one more sign of the fragility of a sustainable growth path ahead of us. Faster growth helps to ease, though not solve, the problems, especially when driven by more productive investments in technology and innovation-intensive production and intangible capital.