Pessimism is gaining the upper hand over optimism, but Parthenon analysis still points to tepid, positive growth in the U.S. and a modestly rising unemployment rate this year:

• The European financial crisis has become more worrisome
• U.S. economic data confirms a substantial housing rebound now occurring
• The Democrat/Republican extreme partisan gridlock continues to preclude even the passage of a current year federal budget, much less a blueprint for long-term budget balance
• Financial markets are continuing to react systematically, adversely to higher risk and slower growth, with equities nervous, the dollar strong, and commodity prices weakening