So I thought you might find it useful this morning for me to review where I think the economy is and where it might be going. That, in turn, depends critically on developments in financial markets, and I'll have something to say about those developments as well.
Finally, I'll end with a few thoughts about what the recent turbulence in financial markets may imply for the administration of public pension funds. 1 Recent economic developments Economic activity this year has been quite sluggish. The weakness in activity continues to be shaped by the fallout from the contraction in housing markets that began two years ago.