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Economic Update
This recession has been so soft that it should be called a "recessionette."
Household spending never turned negative, housing activity set new records, and unemployment never came near the peaks of prior U.S. downturns. As a result, there is little pent-up demand to fuel a vigorous recovery. Growth in 2002 is expected to be subpar. Even weaker is the outlook for profits. Although corporate returns fell hard during the recession, a rebound this year of only 8.5% is anticipated.
"No cake walk" summarises the hazards ahead. From the Enron-induced battering of investor confidence to heightened financial strains and business reluctance to step up capital spending, there is much that could derail this most fragile and muted recovery.
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Structuring
