Economy on the rebound?

Whether the economy is, in fact, rebounding is yet to be seen, according to Vince Malenga, LaSalle Economics.

Speaking at the MID-CO summer meeting in Fontana, Wisc., Malenga said the next three to four months will see a significant improvement in the GDP. "People are underestimating the boost in the GDP in the third quarter," he said. The jump in the GDP is fueled, in part, by the Cash for Clunkers program, which sold 250,000 cars in July alone. "This trickles through the economy," he said. "With the auto industry under-inventoried, the boost in demand will lead to increased (auto) production in the second half of the year."

Although Malenga focused on the near-term third quarter, he said the question remains: what happens in the fourth quarter and beyond? The answer to that question is still unfolding.