Sam Stovall: Economy averts recession

So there you have it. Even though, in our opinion, the housing slump and sharp rise in oil prices have increased the odds of a recession, S&P Economics believes we will avert economic disaster primarily because of the aggressiveness of the Federal Reserve, with its expected continuing rate-cutting and liquidity infusion efforts. We also believe the weakness in the U.S. dollar will aid U.S. exporters, and the restatement of August's employment data, as well as strength in September's results, will help consumers feel less anxious about their jobs and lessen the effect on consumer confidence.

~ Sam Stovall, chief strategist, Standard & Poor's Equity Research, "How Hard a Hit from Housing?," BusinessWeek, October 23, 2007