Our call that the economy was in recession as of the last week of October has still not found takers among the statistical model crowd, but here's a look at the Conference Board's latest thinking, Notice that all the indicators are negative except the stock markets and the supply of money. Both are explained by the financial sector crisis and bailout. The Fed's easing created the money. The flight from all sorts of alternative investment vehicles back into the mainline assets explains the stock market.
As we've said, and will repeat this weekend, Look for a strong stock market and rapidly weakening economy.