I don't have it in me to do a lot of blogging about the economy right now. I will direct you to a couple of blog posts by Barry at the Big Picture. One talks about the inverted yield curve
which continues to suggest an impending recession, and the other talking about average American income/assets
and so on.
The short versions? The odds favor a recession in 2006-2007 and overall, Americans are losing ground in these boom times.