Flying on one engine (TT Dec06 p12-13)

A US house price boom has delivered the fastest growth in a generation as US citizens have devoured goods produced in the factories of China and Asia. The process of equity withdrawal can’t go on for ever and a faltering housing market along with sluggish wage growth and a tightening labour market is denting US consumer confidence. The good times may be coming to an end but there is no reason to fear the end of the party and a great hangover – just yet.