No. of Recommendations: 4
>>The U.S. economy rocketed ahead at its fastest pace in more than 19 years in the third quarter of 2003 as consumers, their wallets fattened by tax cuts, went on a buying spree, an unexpectedly strong government report showed on Thursday"<<


If you break the numbers down, this gain was largely due to a 6.6 percent increase in consumer spending. That said, we said we need to consider what spawned this increase. We have:

1. Tax Cuts
2. Mortgage Refi's
3. Increasing Credit Card debt to to high level of optimism.


How likley are numbers 1 and 2 to be repeated? I'm being realistic. Sorry if that makes me a non believer. For me to be a believer I need to see a few things.

1. Job growth
2. Shrinking consumer debt as compared to income.
3. Shrinking National Deficit.

These are just 3 of the main concerns. Lets see what happens when the next GDP report is released.


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