From Merrill Lynch economists: Getting the exact timing of the acceleration in growth is tough, but the case for better growth next year is strong. The economy has healed significantly since the 2008-9 crisis. In particular, the government, households, businesses and banks have gone a long way toward fixing their balance sheets, allowing them to slowly shift their focus from balance sheet repair to expansion. ... We expect GDP growth to exceed 3% in the back half of next year as the federal fiscal drag drops from ~1.5pp in 2013 to ~0.5pp in 2014. Right now it looks like 2014 will be a solid year. Read more at http://www.calculatedriskblog.com/2013/11/update-looking-for-stronger-economic.html#ksDrYCOLsHcPRbbc.99
McBride, earlier complains that we would do much better without the budget cuts. But Golly gee whiz, he consistently cites evidence that disproves his own priors. 3% predicted growth is damn good, that is approaching third gear for the economy, our highest gear. If MJcBrides claims were true, then Merrill Lynch would be predicting a 4.1% growth rate, and that would be phenomenal.
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