Okuma Group - So Much For The V-shaped Recovery.

Asian-based boutique brokerage, Okuma Group, could be forgiven for crowing over the fact that the V-shaped recovery is conspicuous by its absence but their analysts say they are content knowing that their clients paid more attention to their regular newsletters than the over-optimistic ramblings from the talking heads on the financial channels.

Analysts at the firm have been die-hard skeptics of the possibility of a V-shaped recovery in which the consumer played no part and this has been borne out in retail and consumer confidence figures that point to the absence of disposable household income and a propensity to pay down debt rather than add to it.

Consensus at Okuma Group leans towards a recovery in a U-shape at best and a W-shape at worst. In the former, economic growth progresses at a flat pace whilst the latter sees growth pick up before plunging back again.

The firm suggests that the unprecedented level of government stimulus packages around the world have done nothing more than delay the inevitable and the likelihood is that they will add more in the coming months and years.

The picture is not, however, duplicated in the emerging markets of Asia and Latin America where governments have largely added stimulus to pay for infrastructure paid for by considerable foreign exchange reserves rather than the issuance of sovereign debt. In addition, consumers in these markets are largely debt free.

By: Lousinda

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www.articlesbase.com/business-articles/okuma-group-debt-of-pigs-weighs-on-european-union-1866966.html Lousinda Peters - financialnewsgroup