In this article, the author offers his reflections on the American economy and its "slow, gradual, and tedious" recovery. What the American people are experiencing now is not one of the ordinary recessions that have been experienced since World War II. What they have seen is a bursting of a bubble in the credit markets and in financial institutions--with the effects spreading globally. What they need to understand is that there were huge pyramids built by financial institutions, with untold leverage. The author stresses the learning lesson that he has tried to teach his students, and that is, leverage works both ways. Colleges and universities are facing a new financial landscape filled with gains and losses. The challenge for trustees is to see what can be done to improve productivity in their institutions while maintaining the students' quality of education. The author believes that with good productivity growth, the American economy will do well in the longer term. And above all, he believes the U.S. will continue to have the finest colleges and universities to be found anywhere in the world.