And more bangs could be ahead in the new year. Where consumers are concerned, the current economy is similar to what astronomers are finding about the universe, that it is ever expanding and may continue to be so, and why worry about it. Now in its eighth year, the expansion has slowed but not stopped, and nothing seems able to bring it to a standstill, not to mention a recession, which often follows a long period of growth. And it has confused economists who thought they knew it all since they were paid accordingly. Now, for the new year, they caution about lower executive confidence, lower capital spending plans, and consumer satiety.
Stocks are vulnerable, consumers have big debts, the military situation is a question mark.
And so, and predictably, even forecasts that foresee a pretty good year have escape clauses. And some forecasts are plain negative. And it may be worse for the rest of the world, according to Levy. But the pessimists more often were wrong than right in 1998, and that includes Federal Reserve Chairman Alan Greenspan, who for most of a year thought the coming big battle would be over inflation. It didn't come.