The big problem, however, is that while these remedies are starting to work, they amount to a quick fix rather than a long-term cure, treating the distressing symptoms of recession rather than the underlying disease. If the treatment is more of a palliative than a panacea, then the danger is that recovery could mean remission followed by relapse.

It is to these notorious “imbalances” that we can trace the origins of the catastrophic bust being endured in the US. On one side of the imbalance, America spent most of the last decade on a runaway binge of excessive consumption, fuelled by an unsustainable boom in house prices and a credit bubble inflated by cheap money.

via Green shoots a mirage in economic desert – Times Online .

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