There are some days in this business when there isn't a whole lot of news. Today wasn't one of them. For starters, consumer sentiment took a surprising jump, indicating perhaps, that consumer's fears about the economy may have peaked. There was also news that President Obama is expected to re-appoint Ben Bernanke to another term as chairman of the Fed. In my view Bernanke has earned a second term for the way he's navigated the uncharted waters of the financial crisis. Still another positive development saw housing prices increase for the second quarter, the first such gain in over three years. It makes one wonder whether we are finally over the economic hump, so to speak...

Wait a second, there was one other tidbit... This quote is from an article written by AP reporter Jim Kuhnhenn - "Both the White House Office of Management and Budget and the nonpartisan Congressional Budget Office predicted the budget deficit this year would swell to nearly $1.6 trillion, a record, and far above the then-record 2008 budget deficit of $455 billion." The article goes on to say - "But while figures released by the White House foresee a cumulative $9 trillion deficit from 2010-2019, $2 trillion more than the administration estimated in May, congressional budget analysts put the 10-year figure at a lower $7.14 trillion."

Where to begin?... What exactly is a White House Office of Management and Budget in a government that is producing a $1.6 trillion deficit? And what is a "nonpartisan" Congressional Budget Office? OK, let's forgo the oxymoron jokes. This is serious long-term stuff here. The long-standing solution offered by economists and strategists to the worsening fiscal situation has been that we can grow out of this problem over time. Apparently, this may not be true, if the projections of a cumulative $7 - 9 trillion deficit over the next 10 years turn out to be accurate. How can we as a nation not be burdened with significantly higher taxes and interest rates in the face of these dire predictions? And if that happens, say goodbye to economic growth. It just doesn't add up, does it?

With optimism, hopefully... There was an interesting article in the June 8th edition of Business Week - "The United States of Optimism." According to the author, if one searches the Internet for "pessimism" 1.9 million entries result. A similar search for "optimism" yields 11 million. "Despair" returns 11.8 million yet "hope" results in 615 million. The point being that America is inherently optimistic and hopeful. I have no problem with either, but aren't we stretching things a bit here?

In some cases, seeing the bright side requires rose-colored glasses, which prevent a clear view of reality. If all we do is swap rampant consumer spending for profligate government spending, I'm not sure what we'll accomplish.

I've said in the past that while we are clearly moving in the direction of more government involvement in virtually all aspects of life, there will come a time when we reverse course and wish the government would simply leave us alone. Perhaps we have arrived at that inflection point.

Meanwhile, there are increasing signs that the six million strong who have lost their jobs in this recession are executing Plan B. Some have found similar positions in the same industry, many have started their own businesses, while others have changed careers altogether. All of this speaks to the amazing resiliency of the American people.

And that is what our future really comes down to, in my view. The battle lines have been clearly drawn between the inefficiency and wastefulness of government spending on one hand, and the resiliency and resourcefulness of the American people on the other. Corporations are caught in the middle, and I suspect, over time, the gap will continue to widen between winners and losers. We continue to focus on companies with low debt, solid cash flow, innovative product flow, and disciplined management.

Over the next few months the jobs data will be the most important statistic to gauge the relative strength of the economy and the nascent recovery. If we can create jobs we have a fighting chance. And that is all Americans have ever asked for.