Encouraging Signs in Govt Payrolls ... For Now

Bill McBride of Calculated Risk comments on a number of encouraging signs in the economy in "Employment: Somewhat Better (also more graphs)",

"It appears most of the state and local government layoffs are over.
Overall this was a somewhat more encouraging report."

Sure. But there's a big "if" in the looming fiscal cliff from the budget sequestration. We're at a point where the economy might be more or less ready to start more seriously improving towards potential despite insufficient fiscal policy remediation. Yet we've got looming massive budget cuts that could tip us into a nosedive if Congress doesn't come to realize we've got more to fear from massive cuts than from short term deficits.