The survey was taken in a dark week immediately after Katrina. The images (in the media) were of the type that don't makes us confident about anything.

Energy costs, which act as a tax on consumer budgets, are taking a smaller bite out of consumer pocketbooks. There is, therefore, more money available to spend on other (non-energy) things.

Frankly, I think that's healthy. Property has gotten so expensive, maybe people are getting a little bit of sticker shock.

Our guess is that long-term rates will begin to drift up later this year, albeit modestly.

This is coming in an environment where consumers are being challenged by higher interest rates and energy prices.

After all the negative news about our trade position, our fiscal problems, our currency, our inflation rate and the Fed's credit-tightening program, long-term rates remain very, very low.