Kevin on the new -- and worrisome -- productivity numbers. Money quote:
A couple of days ago Kash also posted a brief look at U.S. consumption growth, which is by far the biggest driver of the economy, and concluded that it was hard to see where future growth was going to come from. Labor income is close to stagnant, credit cards are maxed out, and houses can no longer be used as ATMs.
Remember, too, that taxes are going to go up as the Alternative Minimum tax -- or some revenue-neutral successor -- explodes back onto the scene. Moreover, much of consumer spending is psychological, and the emergence of foreclosures as a major media topic and thus threatening mental picture may have outsized impacts on, if nothing else, further housing purchases.
