A decrease in government spending and looming budget battles are credited for shrinking the economy with the possibility of further spending cuts having even more of a negative effect. However, expected growth in auto sales and housing is expected to partially offset any negative impact. The stock market, near a record high, has surged 6 percent indicating investors are not affected. And, remember, numbers are typically revised in later reports.

We should always keep in mind that a thin Red line is all there is between us and government economic takeover as advanced by President Obama.