The day Bush took office the NASDAQ was in the 2500 neighborhood. Remember when it was over 5000? That’s right, half of the value of our high-tech portfolios and 401Ks dissipated under Slick “It’s the economy, stupid!” Willie.

But now that Bush’s third tax cut has passed, things are finally looking up. Greenspan (when are we going to rid ourselves of this man?) cautiously said that there are indications of a “fairly marked turnaround” and that deflation is a “low-probability event”. And even though earlier this year he poo-pooed the suggestion that Bush’s tax cuts were a good idea, Greenspan “suggested that the fiscal plan signed into law last week by President George W. Bush could have a positive effect on labor markets.”

Planned job cuts have plummeted 53% to the lowest in two and a half years. The National Association of Realtors and Fannie Mae have reversed earlier projects of a slowdown in the new homes market as interest rates reached the lowest point since the 50′s.

The outlook for manufacturing improved as the “manufacturing index rose to 49.4 in May from 45.4 in April, the biggest monthly gain since December. Order backlogs grew for the first time since June.”

The dollar strengthened against the Euro, although the slide was earlier accelerated by a comment from Treasury secretary John Snow and there are a lot of investors still betting on a weak dollar.

In international economic news, the our good ally Australia shows a strengthening economy, while the socialist government recently elected in Brasil continues to struggle with a sluggish economy.