You would have thought by listening to the Fox News broadcast on the radio this morning that we were in a Reagan-era growth rate with the way they were breathlessly excited to report this nearly-remarkable news.
This is a typical pattern. QE, then growth, then downgrade as the Fed tricks run their course.
Our economy's dependence on actions by the Fed are no different than that of a heroin addict. The best cure for that addict, like the economy, is to go cold turkey. Like the addict, the economy will go through withdrawls.
And we should believe this because....?
Amazing how the Christmas season helps the numbers. Jobless rates also dropped a bit. I hope the Repubs hold tough about the fiscal cliff dealings and let’s see how rosy things look next February.