I Dream of Jeannie with the Light Brown Hair

Don't blink, you may miss all the fun:

Maybe the American economy is not going to keel over just yet, after all.

Government reports released Thursday showed surprising resilience in the broader economy, even as the financial system and the housing market continue to weaken. Retail sales rose 1.2 percent in November, and even housing-related areas like furniture and building materials were up.

Wholesale prices surged, indicating strong demand and raising cautionary flags about inflation, and a weekly report found that new unemployment claims fell by 7,000, suggesting a healthy job market.

For much of the fall, investors and economists have been waiting for more definitive signs that the economy either is headed for a recession or will surely avoid one. A clear indication one way or the other would make it much easier for the Federal Reserve to conduct monetary policy by leaning against the prevailing winds.

But with opposing economic forces appearing to offset each other, the Fed is in a quandary. Home prices are falling, mortgage defaults are rising and lending is slowing down, but a falling dollar is promoting American exports, while increasing jobs and rising wages are allowing many Americans to keep shopping.

Consider the source....