The U.S. Bureau of Economic Analysis today reported 1.5 percent growth in real gross domestic product for the second quarter of 2012.

U.S. economic growth has slowed to a crawl. Given the anemic pace of consumption and investment, plus continued austerity for state and local government spending, and weak exports, it is difficult for the domestic economy to produce at a more robust pace. Moreover, there are negative headwinds from Europe and Asia/Pacific. On the plus side, housing could turn more positive over the course of the second half of the year. But the continued tension between slow wage growth and modest profit growth in a weak economic environment will result in a shortfall in demand, perhaps right through the end of the year. The Federal Reserve may unleash another round of quantitative easing soon, but the real question is how much positive impact it will have amid a backdrop of ongoing household deleveraging.