On the “recovery” and its timing, I am not sure what that actually means. Debt levels in the U.S. and in Europe remain unsustainably high and hence will be corrected one way or the other and whether we want it or not. Unless the financial alchemists are right, which I very much doubt, we will have to live through a BIG hangover after the big debt fiesta. It took a couple of decades to get there so the regaining of ratios that are more sane will take time. Meanwhile, civil unrest etc. will have to be avoiced (how much pain can Latvians take without revolt?). I still fail to see where the (real) money is going to come from that will lead to a healthy demand for goods and services going forward.

Furthermore, the notion of “recovery” may itself be evolving. I am not saying that these proposals will become law, but these are thoughts that may take root in the changing ecosystem that is global governance; http://www.stiglitz-sen-fitoussi.fr/en/index.htm

By the way, Sarkozy will be giving a major speech tomorrow, Monday, on the future direction of his Presidency……..