Painful decisions, our dangerous year and Burton Malkiel.

• The Globe and Mail. No doubt about it – Canada faces very painful recession decisions. “The recession, which will preoccupy this week’s G8-plus meeting in Italy, will change Canada not just in the short term but also over the long haul.”
• The Globe and Mail. Pitfalls dot recovery road, IMF warns. “The global recession is coming to an end, but the return to economic health is a long way off, and the route to recovery is laced with major risks, the International Monetary Fund says.”
• National Post. 2009 remains ‘dangerous year,’ World Bank says. “The Group of Eight nations should not presume a global economic recovery is near, World Bank President Robert Zoellick said in a letter to G8 host Italian Prime Minister Silvio Berlusconi obtained by Reuters on Monday.”
• National Post. Bonds keep risk in check. “The role of bonds in reducing portfolio volatility was vividly demonstrated in the past year, when stocks plummeted around the world. While many stocks and equity funds were down 50% at the lows, balanced portfolios roughly half in bonds fell only 15% to 20%. This is why veteran financial advisors, such as Jim Rogers, the retired chairman of Vancouver-based Rogers Group, preach balanced portfolios with a stocks/bond mix of 60/40 or even 50/50.”
• Newsweek. Economists out to lunch. “One intriguing subplot of the economic crisis is the failure of most economists to predict it. Here we have the most spectacular economic and financial crisis in decades—possibly since the Great Depression—and the one group that spends most of its waking hours analyzing the economy basically missed it. Oh, a few economists can legitimately claim some foresight. But they are a handful. Most were as surprised as the rest of us.”
• InvestorsInsight.com. Make sure you get this one right. “In this week’s Outside the Box we look at a very well written essay about the biggest of all questions in front of us today. Do we face deflation or inflation?”
• News N Economics. World economic reports (July 3-10): finding some turning points. “Here in the US, markets are looking for the actual turning point, having priced in the “falling less quickly”, or the “second derivative”, story. Unfortunately, the turning points has yet to materialize in much of the domestic reports: industrial production remains in descent; housing moves laterally on the bottom; and trade is (maybe) showing some life.”
• Economics Help. Uncertainty over nature of recovery. “Recently, I’ve seen a lot of different shapes to forecast any potential recovery. I’ve seen claims of a trampoline recovery (W shaped) to a saxophone recovery (quick recovery followed by leveling off).”
• Million Dollar Journey. Radically frugal. “What are some things you do that others might consider ‘radically frugal’? Keep in mind that being frugal means it saves you money. Being cheap means someone else has to pay for your financial choices. Yes, it’s ok to use a ‘two for one’ coupon for a meal out. No, it’s not ok to tip the waiter for just the one meal.”
• CBC. U.S. dollar unlikely to be toppled as top currency: economists. “A top economist at one of Canada’s biggest banks says it’s unlikely the U.S. dollar will be ditched as the lead currency used in international trade.”
• SRI Monitor. SRI at the G8 Summit. “Transparency, integrity, social and environmental standards – an SRI conference? Surprise!, it’s the G8 summit.”
• SmartMoney. An interview with Burton Malkiel. “Recently, China has piqued Malkiel’s curiosity. He is the chief investment officer at AlphaShares, an asset manager with about $150 million under management. The firm has two indexes used for exchange-traded funds dedicated to international investors who want exposure to China. Barron’s caught up with Malkiel recently, to hear his views on China and other topics – including how the random walk is going these days.”
• Saving For Serenity. Financial freedom – at what cost? “What is your financial freedom worth to you? What are you willing to sacrifice for money? How much of yourself are you willing to give?”
• Viralogy.com. Should retirement be the “end goal” for Gen-Y? “As the nature of our business continues to evolve and the expectancy of our lives continue to lengthen, it’s becoming more and more clear that our initial needs for “retirement” are becoming obsolete. But putting these tangible needs aside reveals an even bigger and more important question…”

And please follow me at twitter.com/todayseconomy.