This was widely taken to mean that the Fed will aggressively pursue a policy of quantitative easing.
On the other hand, interest rates are as low as they can go and what else can the Fed do to stimulate job growth, which remains job one?
Could we finally be seeing some light at the end of the long housing tunnel?
Factory orders are up, inventories are reasonable, demand for durables goods has firmed, and customer reticence may be multi-causal.
Meanwhile, we see a mixed picture elsewhere. Consumer confidence has taken a hit.
A new worry in the form of the dreaded Death Cross, in which the major indexes' 50-day moving averages slip below the 200-day average, has materialized.
On the other hand, it may prove to be a minor blip on the landscape or may even turn out to be a Golden Cross in which the 50-day measure climbs above the 200-day mark.
At least the economy does not have that deer in the headlights look.
We aren't out of the woods yet, of course. In retrospect and with twenty-twenty hindsight it was unwise to litter the paths with bread crumbs on the misguided assumption that other commmodities (natural gas, oil, coal) were more valuable and should be hoarded.
On balance, though, fears of a double-dip recession are abating in favor of the view that the glass is half empty.
True, we do not envision a Goldilocks scenario where everything tastes just right
Still, the data suggest that a modest recovery may be under way, with forecasts of 1.5% GDP.
The question is: Will it be sustainable?.
The bulls are strking a more confident pose as they line up in front of their mirrors in glorious masculine Wall Street profile.
Nevertheless, the road will be long and winding and marked by unexpected obstacles and occasional setbacks.
It could take months for this to happen.
On the other hand, the present is upon us like a gift we cannot refuse.
Where is that one-armed economist that Princeton promised President Truman? -- DL