It may work out by second quarter, it may not. There are a lot of wild cards.
Believe me, missing that number by so wide a mark set everyone back to the drawing boards. Just watch the futures and the early market tomorrow night and early Monday morning. The US markets are in for one hell of a ride. I hope OPEC stays with the dollar because there will be real pressure to switch next week.
The lastest run ups have not been speculators but money that had gotten burned before and were waiting out the recession. If this chases them out for another year the recovery could be nipped in the bud.
I hope that there are some really good earning reports in the next two week as that would really help.
The Dow will go below 10,000 next week and could well go down more than 10%. I hope I am wrong but that is how it looks to me. THe NASDaq will certainly go below 2000 and could go down more than ten percent as well. As I said look for the Euro and $130.00. THe slide might might me to steep to allow the Japanese to prop up the Yen, whick could hit $106.00. These are terrible numbers for a "recovery" and could kill it for a couple of years.
This is serious stuff and could turn everything upside down for the economy and for Bush. And, believe me I am not pushing any "plan" that the democrats have because they do not have one. But it would be foolish not to see some real damage here. Of course the worst that could happen would be to raise taxes - that would start a depression.