"Yes, it is true that the home building and autos sectors
have been hammered. But, it is not true that this
weakness has spread. Outside those sectors, the economy
is not just healthy but downright strong, reflecting
relatively low tax rates and loose monetary policy.......
...Many say it feels like a recession and predict negative
growth. Then the data arrive, and show growth. The
pessimists then say it doesn’t matter because it’s “old”
news. After all, the quarter is already over and the
evidence of recession will be clear by next quarter, they
say.
Eventually, those forecasting recession are going to
run out of time. The clock is already ticking and the
economy remains resilient. Construction and auto related
layoffs account for more than all the job losses in the past
year. Initial unemployment claims remain below 400,000
and the financial sector appears to be bottoming."
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