THE GOOD NEWS AND THE BAD NEWS ABOUT THE ECONOMY. First, the good news:

While still far from health, the U.S. economy is showing some encouraging signs of life as consumers tiptoe back to the shopping mall, home builders pick up their hammers, and manufacturers clear out inventory.

That suggests the soon-to-be-completed first quarter will be as bad as it gets, and apocalyptic fears of another lengthy, painful Great Depression look unwarranted.

Now the bad news:

Economists think the policy response from Washington offers the best hope that these tentative signs of life will translate into economic growth before the year is out. Unfortunately, policy missteps pose the biggest risk to recovery.

“Policy missteps?” Judging by the last week, we’re in trouble . . . .