2009 in Review: Staying Afloat

The world economy has stop failing and Asia in particular has bounced back faster than expected, largely due to the unprecedented global coordination in both fiscal and monetary policies. But as 2009 draws to a close, uncertainty threatens to derail the sustainability of the current recovery that has been largely driven by replacing private demand with aggressive monetary easing.

We like the way William Thomson, Chairman of Private Capital in Hong Kong, summed up 2009 by describing the global economy’s escape from a cataclysmic collapse of the financial system analogous to a heart attack treated with previously unthinkable doses of adrenaline in the form of unorthodox monetary and fiscal policies. After a lag, the patient has returned to consciousness but is in far from rude health.

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