The Eight steps to economic recovery are…

1. Government increases spending. CHECK!

2. Stock market rises. CHECK!

3. Bond yields rise. CHECK!

4. Consumer spending stops falling or begins to rise. Sort of CHECK!

5. Housing market begins to recover.

7. Interest rates increase.

8. Unemployment returns to normal.

This is what the consumer price index looks like right now.

Here is the 12-month percent change for the Consumer Price Index.

As you can see there is plenty of room for improvement in the consumer spending area. Only time will change consumer expectations about the market so that spending can increase.