The fix is in – strong growth for 2008?

We have gone from the jobless recovery to the full employment recession.

Recap of prospects for strong GDP in 2008 – details/support covered in previous posts:

  • Government spending has been moved forward and is now kicking in.
  • Exports accelerating, sustainable, and keeping personal income growing.
  • Business inventories are very low.
  • Fiscal package to be high multiple.
  • Short term interest rates will be kept low enough to keep mortgage resets from being disruptive in Q1.
  • Asian stocks overnight rebound and US stocks rebounding as well – PEs looking unsustainable low.
  • Housing too low for further declines to subtract from growth – can only add if it rebounds as I expect it will.