All the price indexes are rising from the impact of the government stimulus of USD 787 billion. However, whether this will last is another story. Overall, such price increases will help to prevent foreclosures as the equities of the mortgages would allow home owners to keep their homes.
Inventories have also been depleting. This will signal manufacturers to ramp up production and therefore employ more staff. After that, the economic outlook would depend on what the stock market does. This is because of the "wealth effect" associated with the stock market. According to Greenspan, the deciding point is in the second quarter of 2010.
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