A good article on recession and recovery

click here to see the entire article. Here is a summary:

Recession recovery is under way.

Rapid growth is not uncommon right after a severe financial crisis and it will be seen now for short period at least.

In US, interest rates are now likely to stay low for a long time. Hence banks will be able to take on more “leverage” (debt)

But whether this short-term recovery can sustain real growth or not is doubtful

Federal Reserve's financial regulation was and has been weak. Large profits that can be earned by taking advantage of lax regulation in the financial sector.

The phenomenal growth of the derivatives market over the past 30 years, has made all big banks far more interconnected, and hence systemically risky

In today’s nascent global recovery, we are already seeing bubble-like rises in the prices of real estate and assets worldwide. The basic structure of crazy loans and incentives in the system is unchanged.