Although people said they felt worse, according to surveys of consumers and executives, they actually spent more money in the late summer and early fall.

The result: The economy probably expanded by a 2.8% annual rate, according to a MarketWatch survey of economists. It could even top 3%.

SYDNEY (MarketWatch) — European leaders announced a deal early Thursday in which private-sector holders of Greek debt will take a 50% writedown on the value of their holdings, removing a key stumbling block for Europe as it works to resolve its debt crisis

Sarkozy also announced that the European Financial Stability Facility will see an increase in firepower by four- or five-fold.

An expanded bailout fund is seen as crucial in ensuring that the debt crisis doesn’t engulf Spain and Italy.