If you believe what they tell you in Washington (lol) you will be believing that GDP will grow forever and that the notion of anything beyond a soft landing is utter claptrap.
Goldman Sachs Economic Research released an interesting report entitled, "The State Sales Tax Slowdown: Is MEW to Blame?"
MEW is mortgage equity withdrawal. Goldman's report says, "State sales tax revenues have slowed sharply, from 7% year-on-year in early 2006 to 2.6% in early 2007." Adjusted for inflation, that would mean tax revenue growth is now at 0% on average.
Goldman itself says the state tax revenue information from The Rockefeller Institute are among "the most useful" regional economic data because the information is closely related to economic activity and is available more quickly than other economic indicators.
Not to belabor the point, or to end up duplicating all the information in the Goldman report, but their conclusion is the MEW is indeed having a negative impact on regional economies, especially in boom/bust states like Florida and California among others.
You'll be hearing more about state fiscal moaning and groaning in the months ahead.