We shopped the world's markets until we dropped. We bought a lot more of everything, including capital and consumer goods, foods and motor vehicles.

While we can be somewhat blase about goods [prices], at least for a little while longer, we cannot conclude that retail inflation is anywhere near under control.

To put it mildly, durable goods orders have been all over the map but the trend appears to be slowing.

[The economic recovery] sure looks to be here, but once [Fed officials] recognize that fact, rates, including the fed funds rate, could jump, ... That is the box the FOMC has gotten itself into with their statement that policy accommodation can be maintained for 'a considerable period.'

The manufacturing sector ended the year with some decent momentum that should carry it through the first part of the year.

The pull back in housing remains orderly, at least in the existing market. But the red flags are up. Inventories continue to rise and that is a warning that prices cuts could be coming, and soon.