consumer prices are really going to be under control, as well.

The consumer still has life. It does temper the overall gain, but we're still going to see the consumer spending this quarter.

While everybody is very happy with the performance of the economy under Greenspan, it's come at quite a price. We have a negative savings rate. The consumer has been out spending his and her income, partly supported by an increase in housing prices, where people had to pull a lot of the equity out of their home. Well they can't do that again.

During this recent period there may be some extra spending on the part of those recovering from hurricane disasters. But it is also true that comprehensive consumer spending has been outstripping income growth over this period,

The tale of the zombie consumer continues, ... There is no stopping him or her: Can't shoot 'em, stab 'em, or keep 'em away from the stores with garlic -- especially with post-season sales in progress.

So while some special factors may be boosting spending, the overall trend of spending is well out of line with income growth. This tells us that this spending trend is unsustainable unless consumer income growth picks up sharply.