Many more earnings revisions from companies to come for 2013.
You may be correct but government spending in the United States is not what will cause the earnings decline. Europe is remaining in recession because their governments went on an austerity path instead of stimulus. Whether you like the stimulus spending here in the US or not there is no doubt it helped. Every credible economist says so and so does common sense.
Europe is in recession because they've made long term promises years ago and now they have finally come to the realization they can't keep them. How could they? They are unrealistic.
The spending problem in this country is nothing short of alarming at this point. What is even worse is the failure by our President and leaders to get serious in addressing them. I thought when we had our credit rating reduced this past year it would've sent a strong message, but Obama and company continue to play games. I am sure Fitch and Moody's will revisit this again sometime in 2013. Obama puts in place a commission like Bowles/Simpson, which offers a balanced approach, but then doesn't take their advice. If that is not a clear indication of how serious he is then nothing is. Why put the commission together in the first place?
As far as "the stimulus" goes I am still trying to find out where all that money went. Aside from unemployment being extended for 200 weeks, more people on food stamps and other government assistance I don't see much to be encouraged about at this juncture.