New York, New York (PressExposure) January 18, 2010 -- The nascent economic recovery underway in developed economies is almost entirely dependent upon the continuation of the unprecedented fiscal and monetary stimulus provided by their governments. That is apparently the view of analysts at Asia-based investment boutique, "Mann International".
Sources close to the firm said that the analysts also believe that the withdrawal of this stimulus may tip the economies back into recession. They cited the lack of revenue increases in the quarterly results published by leading corporations and economic bellwether industrials as proof of the weakness of the recovery and suggested that firms would be unable to continue to use cost cutting as a means of generating the profits that fueled the considerable optimism in 2009.
Despite the accumulation of huge budget deficits in many developed economies, the consensus appears to be that efforts to stem the progress of what "Mann International" believes is a natural correction of excessive imbalances in the global economy, are likely to fail until insolvent companies and banks are allowed to fail.
Nevertheless, "Mann International" analysts believe that, despite the risks inherent in running up huge deficits, the governments will choose to continue their policies rather than expose their citizens to the prospect of an economic depression.