Pretty much everyone agreed housing and refinancing was the driver.
One view, and then another, in May, 2006,
"Greenspan said he doesn't see home prices falling on a national basis, but instead in certain areas of the country. He warned reduced access of Americans to equity loan extraction would have an economic impact, which has had an "important effect" in stimulating the economy.
"The housing market has been one of the economy's biggest economic drivers, racking up record-high sales five years in a row. Rapid appreciation in home prices has helped power consumer spending, boosting the economy."
It looks as if housing is calling the shots - if housing goes softly, the economy goes softly. If housing crashes, the economy sinks pretty low.
Arf