MULTI-MANAGER VIEW: Worry lines

Historically, economic recoveries have always been paced by rapid expansion in debt-financed classes of expenditure such as housing, capital spending, and sustained (not just cash for clunkers) demand for automobiles. But these drivers of economic growth that existed in typical recoveries - debt origination and consumption growth - are very much compromised at present. Hence, central banks are following a doctrine of massive government-led monetary reflation and debt creation as the answer to this secular consumer deleveraging cycle.