>EARLY, BUT FUNDAMENTALLY CORRECT (CIBC)

This report includes charts on following headings:

• A Shock Heard ‘Round the World'
• Bamboo Shoots
• Emerging Markets’ Savings Represents Potential Consumer Spending Power
• Historical Lag in Commodity Prices vs Global Industrial Production
• Global Oil Demand Drop Leaves OPEC with Spare Capacity
• Recent US Indicators Still in Recession Range
• US Economy: Sharp Recession, Sub-Par Recovery
• A Penny Saved ... is a Penny Not Spent
• Fed Not Repeating Japan’s 1990s’ Errors
• Fed Has the Printing Press Running Full Speed
• The Banking Crisis is Over
• Fiscal Stimulus is Massive
• Past War Debts Were Inflationary Look For 5%+ US CPI in 2011
• US Dollar on Long-Term Slide
• Canada’s Recession: Steeper Dive This Time
• Recovery Will Also Be Sub-Par
• Milder Decline in Household Net Worth
• Canadian Banks Less Levered Pre-Crisis
• Non-Financial Debt/Equity Lower in Canada
• Government Dissaving Will More Than Offset Household Saving
• A Structural Shift in Canadian Trade
• C$ Now More Responsive to Commodities
• C$ Move Looks Early vs Commodities
• TSX Cheap vs Long-Term Earnings
• TSX Spring Move Eclipsed Any Pre-Recession-End Rally
• Corrective Rallies Will Be Short-Lived But Canadas Will Outperform
• Gov’t of Canada Issuance Elevated vs Deficits
• Less Pressure from Canadian Borrowing Less Temptation to Inflate Debt Away
• Provincial Deficit Target Near $30 Bn Based on Earlier, More Optimistic Forecasts
• Still Some Room for Spread Narrowing

To see full report: ECONOMIC UPDATE