U.S., China headed toward becoming the G2

Barack Obama heads into the G-20 meeting in London next week having been told by his top advisers that the US economy is showing signs of recovery.

New home sales rose by 4.7 percent last month, applications for mortgages are soaring in response to low mortgage rates, and durable goods sales increased last month. A few brave souls think the real economy might lead the financial sector out of recession, rather than the other way around.