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.

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