The U.S. economy's looking a lot better over the last couple of weeks. Initial claims for unemployment insurance are down, manfacturing surveys are showing signs of a turnaround, and GDP is up.
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Well.
What is understood to be the foundation of this nascent recovery? Focusing on manufacturing for a moment, what sorts of goods are being ordered and by what sorts of businesses?
I ask this because I find discussions of revovery to be confusing. On the one hand, we are told, for example, that there is some sort of over-capacity issue (some even say crisis) that cannot be easily resolved until demand is expanded beyond the over-used American market, the EU and Asia.
On the other hand, we're told that no such problem exists and the present slump is not an indication of a global malaise but a normal, statistically predictable dip that will right itself.
Considering that a good amount of the highly praised profitability and productivity gains of the 1990's were, seen in retrospect, less substantial than unicorns and an immense house of mirrors was built to keep the market super-heated what solid factors are in play (besides a one time hit of extra spending cash via the tax rebate)?
Surely the bust was caused by systemic problems and uncontrolled (or uncontrollable) trends. What's changed?
DRM
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