Where will US growth come from?

Manufacturing and housing were seen as the keystones to a US recovery. With Europe stalled and US consumers pulling back, manufacturing can’t grow. Housing is in better shape than existing home sales would indicate but with credit tight and no jobs housing can’t possibly sustain a recovery.

QE3 or not, the Fed is tapped out. That leaves the US Federal government holding the bag. The question is: how much do you trust Washington?

At the end of the day, I expect them to do what they always do — spend — but that won’t happen until after the election, at least. At the moment, that seems like a long time from now.