Despite all the worries about the housing bubble bursting, the U.S. economy still grew at an annual rate of 4.0 during the last quarter:

The economy grew at its strongest pace in more than a year during the spring as solid improvements in international trade and business investment helped offset weakness in housing.

The gross domestic product, the broadest measure of economic health, expanded at an annual rate of 4 percent in the April-June quarter, significantly higher than the 3.4 percent rate the government had initially estimated a month ago, the Commerce Department reported Thursday.

That isn’t to say that I think the economy is running strong but it isn’t the doom and gloom story that Democrats are likely to portray it as either. About a week ago, I read something about how Democrats planned on using the sub prime mortgage problems as a campaign issue. I don’t know why they but they think it’s a winning issue.

I’ll be checking for King’s analysis later today.

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