Glass of economic woes half full, not half empty: defense spending strong; housing recovery looms with population booming.

So, what about that water glass?

Has it been half empty these past six months, what with the collapse of the lower end of the residential housing market and spectacular rise in the price of gasoline, now exceeding $5 a gallon for higher grades?

Or has it been half full, what with other indices chugging along?

Well, I opt for the latter view.

We've been weathering those one-two punches with equanimity, and we can expect more of the same through Dec. 31. We're in for 15 rounds.

Here's what to keep in mind.

The housing crisis impacts but a narrow segment of the population, mostly folks at the entry levels of the market. Just 10 out of 90 ZIP codes in the county have been impacted severely. And most of those are at the bottom end of the market. Homes in better neighborhoods are holding their value. Have you priced a home in Del Mar, La Jolla or Rancho Santa Fe lately?

The gas crisis is what it is--a must-have item that costs more than twice what it did just two years ago.

We've weathered previous gas hikes, and I am sure we'll weather more. Gasoline is but one in a long list of commodities in short supply, including copper, corn, wheat and soybeans. (Not to mention precious metals.)

By the way, I see prices at the pump moderating a bit after Labor Day--unless disaster strikes.

So, smooth sailing ahead?

Though I can't say I see the San Diego Padres in the World Series, or the Chargers headed to the playoffs by the end of December, I do see reasons to count blessings, economically speaking.

First, national defense spending should continue in the future as it has in the past, and military outlay is a big reason the local economy remains buoyant.

Second, housing is well on its way to a modest recovery, and should pick up as we move into the rest of this year and next, which is a very good thing.

We're no longer talking about the wealth effect derived from the dramatic increase in housing.

I suspect that we all realize we lived for too long on the equity in our homes. The health effect wasn't healthy, and now we're back to basics.

There's other good news to be had.

The county jobless rate hit 5.5 percent in May--the highest in five years, though still better than the state rate of 6.8 percent.

Our very own San Diego Business Journal Index of publicly traded stocks is 200 points ahead for the year, compared to a 200-point drop for the Dow Jones Industrial Average and 150-point drop for the Standard & Poor's 500-stock index.

Fortunately, we haven't fallen far in the current downturn, and don't have far to go before the ever-ending cycle kicks into an upswing, and we're off again toward the next level of growth.

After all, the state population keeps growing, slowdown or no, which keeps ratcheting up the pressure on the housing stock.

A few years from now because of demand surging over supply, buyers will be glad to pay whatever price they can for shelter.

And soon enough all will be good again.

To quote from Shakespeare's great tragedy, "Julius Caesar:" "The fault, dear Brutus, is not in our stars, but in ourselves, that we are underlings."

I disagree. We should thank our lucky stars!

Tom York is editor of the Business Journal.