Based on all the good news with various specific economic updates, factors that include manufacturing, housing prices and sales, home building, and, especially, auto sales, a bit of wishful thinking and downright optimism went into thoughts of an improving economic recovery.

Perhaps not so. Sure, bad news lingered, too: The trade deficit and lingering unemployment levels were strongest but also lackluster Christmas sales and slumping consumer confidence.

Now comes the big news, highly symbolic, yes, but also frightening, the economy shrunk for the first time in almost four years. A big oops, seeing how confidence so drives the markets. But with spending cuts promised to help ease the growing deficit, we as a nation must endure some lumps to pay for our past sins, or really spending. It's like a family (or a college student) with a credit card. Eventually, you got to pay, and it's never easy.

You can't have a recession, or in this case, a double dip recession without the first quarter of economic contraction. So what happens next? Taxes ticked upward, more spending cuts are promised and unemployment continues to impact the entire nation. Furthermore, and I think this was perhaps the biggest reason for the decline in what should have been an artificial boost the economy, the fourth-quarter shopping season, our leaders have shown no indication of working together to repair the economy.

The nation seemingly has a complete lack of confidence in our elected leaders, from the president to every member of the Senate and the House. And that's not improving any time soon. At least, there's not a major fight yet over immigration. Coming together to work on anything, forget the fight over gun violence, would help repair the damage they've caused.

Lots of news about housing levels, building and buying and home prices, reaching pre-recession levels.

Those are all good to hear, of course, but here's another one we in Michigan need to hear more: Profit-sharing for autoworkers. That's a big boost to local economies, businesses that rely on people spending extra money.

Ford reported earnings that will allow it to spend $380 million on its employees, not too much considering the billions earned. However, it is a boost to local communities.

Nearly 46,000 employees are to receive $8,300 in profit-sharing bonuses. That's some great news and a good start to a sustained recovery. Too bad, though, we're still talking about recovery.

So a deal was reached within the Senate regarding the fiscal cliff, ending one year and beginning the new one with the House having to approve or disapprove of the deal.

Shame of a way to end and start a year, the same old tiresome infighting that many fear is ruining our country. It would take a lot more than political leaders to ruin such a good thing, but they are trying their best it seems. The economy, I think, will be fine, an increase in taxes or not. Slowing the accumulating debt will boost markets and improve confidence, but no one in DC seems interested in long-term solutions over their short-term soundbites.

Of course, it beats ending the year with celebrity baby news with two of the biggest celebrities... oh, that's tiresome.

Saw something I want to check out, or more likely await actual results, but the group that forecasts national sales amended its projection for Christmas, from an increase of 3.3 percent to an increase of 2.5 percent, as CBS News reported on 'Sunday Morning.'

The report said the decrease in the estimate of the holiday's sales came for two reasons: Hurricane Sandy and its devastation of the northeast coast, or NY/NJ area as well as the impact of the Sandy Hook shooting.

I understand fewer sales due to people paying to replace their homes and belongings, spending less on gifts because of the need for essentials. The economic impact of the hurricane affected sales of cars and will force the jump of building materials sales. But the emotional impact of a tragedy? That's kinda surprising, though I guess I can see people less enthusiastic, especially out east.

But I thought the jump in gun sales would counter that.

Yes, more evidence the economy is coming back. I'm not saying limping back, and may even be leaning towards roaring back. Likely, this is wishful thinking, at least here in Michigan.

But most of the news has been good. The unemployment number ticking downward was good, though mostly it's seasonal and impacted by leaving giving up the hunt for a job.

However, housing is back. Locally, home prices are up, up, up.

I heard on radio this morning that office parties are back, another sign of more than survival for many companies.

And CNN reports that today will be FedEx's biggest day of the year and possibly ever with 19 million parcels mailed.

Another good sign, I say.

So perhaps we won't make it to that fiscal cliff, as if the rich are getting richer, they'll be paying more taxes  no matter what.