Prospects for growth in the year ahead are solid at the national level, and of course, this can only be good news for the Bay Area and California as well. The U.S. economy has shown remarkable resilience in the face of some severe shocks -- in particular, the surge in energy prices that began a couple of years ago and the devastation wrought by the twin hurricanes last summer.
A more doctrinaire Fed chief wouldn't have allowed the economy to grow this fast, but Greenspan argued that technology was creating productivity gains that would allow rapid, inflation-free growth. There were a lot of economists at the Fed who thought not tightening back then was very dangerous, ... The great accomplishment of the Greenspan Fed was recognizing that productivity growth would allow the economy to grow at a faster rate.