Merrill's economic forecast

Here's an 8 point summary of Merrill's latest economic forecast.

• Q3 growth was 4.9% but the fastest growth was in inventories up $17 billion!
• Home prices down 15 months in a row, and housing is in a "depression."
• 80% of all the job growth this year are "created" by the birth/death model.
• Consumer confidence is as low as when Hurricane Katrina hit, and has plunged 25 points in 4 months!
• S&P 500 earnings estimates for 2008 are $83.00, down from $89.00.
• 132 occurrences of "weak" or "slow" in latest Fed beige book report.
• 7th consecutive monthly drop in Merrill's consumer stress index.
• Jobs forecast for Friday: an uptick to 4.8% unemployment, with just 50,000 jobs created.