Regardless what one watches on TV, our economy is fine…however, there is risk. But, there always has been.
To say that a full-scale depression was averted I think is an understatement. I believe that the Federal Reserve is ultimately responsible for reacting as quickly as they did and moving the money supply into the market saved us. It was risky and bold, unchartered territory for the Fed, only the future will tell the rest of the story; but for now, here’s what I got…

~This morning on CNBC, they reported the Dow was up 5.5% this year already. NASDAQ was up over 3% for the year…
~In reading the Wells Fargo report this weekend, it said that “after suffering the first contraction in global GDP in 2009, the global economy came roaring back in 2010, expanding nearly five percent last year.
~Final domestic demand (final sales to consumers, business and government) in the United States rose 2.9 perent in the fourth quarter of 2010, the strongest year-over-year growth rate in nearly five years.
~The US economy has expanded for six consecutive quarters, and monthly indicators suggest that the economy continued to grow at an annualized rate of roughly three percent in the ifrst quarter.
~Real GDP has surpassed its previous peak set in Q4-2007.
~There are signs that the recovery is becoming more sself-sustaining as personal consumption expenditures and business fixed investment spending have both been growing at solid rates. Non-farm payrolls have risen by 1.3 million workers over the past year, although it will probably take a number of years to recoup all of the 8.8 million jobs that were lost during the downturn.

KEEP YOUR EYE ON THE PENDULUM

Source: Wells Fargo Securities, CNBC