Keep in mind the surging earnings are not coming from the US. They are are coming from US multi-national corporations with strong overseas growth. It is my contention that the impact of the housing slump is being totally underestimated. The 1.3% GDP below an estimate of 1.8 is due to the housing slump. Of course this will be revised, Right now I am of the opinion we will see GDP well below the Fed forecast this year.
