While we invariably get nervous when too many folks are too sanguine abut anything, the worldwide economy continues to perform very well.  According to today's Wall Street Journal:

The world's central bankers are so confident that growth will remain steady and inflation under control that their main worry is less the immediate future than whether conditions are breeding excessive speculation in financial markets…Indeed, though the U.S. economy has slowed substantially from its torrid pace of a year ago, it has kept growing fast enough to keep unemployment down despite the housing slump. In the 13 countries that use the euro, growth is expected to abate from last year's six-year high but remain well above the sluggish pace of prior years. Data released yesterday show Spain joined Germany and Italy as standouts in the fourth quarter…Globally, inflation is still low by recent historical standards, though higher than some central bankers would prefer. U.S. consumer prices, excluding food and energy, rose 2.7% over the past 12 months, the government said yesterday. Oil prices are off their peaks. Global stock markets are buoyant.

For right now, high oil prices and the housing situation are being readily absorbed.

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