7/4/07

Where are the bears?

The US economy has solid momentum.

Except for the unwinding of the housing bubble, the rest of the economy is doing well.

Income and spending are growing at a nice pace. Claims are at levels associated with solid employment growth. Backlogs are expanding at a double digit pace. Liquidity is growing at a rapid pace. The yield curve has steepened.

These are all positive signs suggesting the housing debacle is not having the feared impact on business activity.

More on http://www.peterdag.com/.

George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977

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