At the start of this year's second half, the economy was supposedly primed for a rebound. Whatever had happened to end the year before and begin this one, and nobody has bothered to explain, water under the bridge. These “transitory” factors and cross currents would abate and then the real strength of the US economy would show through.
Forget about everyone else's troubles overseas, they said. The unemployment rate went a little lower therefore still keeping Economists and policymakers to their story predicated on a strong labor market. Sure, there were “unexpected” problems in Germany as well as those suddenly popping elsewhere, but so long as US businesses keep on hiring none of that overseas turmoil would matter.
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