Quite a lot of economists have been saying that recovery might be well under way. The stock market had a great run in March and sales and revenue figures are better than expected. So is it high time to remain more optimistic this time around? Here’s a CNN story that probes a rather realistic look at the economy.

Here are some key points from the story:

  • Loans are still increasing but credit squeeze maybe over. Borrowing rates are down. Credit rates are improving. These provide cushion for businesses not to go under. Cash flow makes it attractive for investors to put cash into the markets.
  • The pace of economic decline has slowed down. Exports are down but pace is moderating. GDP is declining at a more moderate pace.
  • While these can be seen as positive indicators, the fact is these are all in decline.
  • Areas to consider: unemployment, existing private sector debt, and government’s recovery of the bailout funds.
  • Mishandling of situation can lead to another economic failure.

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