Although the NY Times is putting a more positive spin on it, the news out of the BEA on income and spending in May suggests to me that folks aren't spending their tax rebate checks, at least not yet.
While incomes were up 5.3 percent in May, consumption was up 0.4 percent. Nothing to sneeze at, perhaps, but a fair cry from a large consumption effect for now. We'll see what happens in June and July!
