Posted on 07/27/2007 6:29:18 AM PDT by misterrob
WASHINGTON (AP) -- The economy snapped out of a lethargic spell and grew at a 3.4 percent pace in the second quarter, the strongest showing in more than a year. A revival in business spending was a main force behind the energized performance.
snip
Inflation -- outside a burst in energy and food prices -- moderated.
The second quarter's performance was better than the 3.2 percent growth rate economists were expecting. It was the strongest showing since the first quarter of 2006, when the economy expanded at a brisk 4.8 percent annual rate.
Gross domestic product measures the value of all goods and services produced in the United States. It is considered the best barometer of the country's economic fitness.
"I think the confidence level of companies has come back. That's why there was a modest pickup in capital spending," said Ken Mayland, president of ClearView Economics.
snip
This is really good news though and one that will likely restore confidence after the huge drops this past week.
Worst economy since Hoobert Heever.
Rush just loves jumping all over these economic experts.
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
Doom Gloom Doom Gloom....etc. /dem mantra
damnit first the economy is going to bottom out and we’ll be in a recession until 2020 and then the economy expands, the wsj and dismal are reporting either gloom and doom or cautiou optimism
Could the crop of current economics “experts” make up their minds?
They start the good news under the Democrats Congress, even though they’re in office for six months...
That businesses are spending is really good news since they tend to do so in times of expansion. Now, the only time that can be an issue is when people are giving the farm away to close deals but in Q2 that’s not the case.
The left’s talking points are acknowledged throughout this piece at the end.
Don't look for any economic good news in the Houston Chronicle. According to them, Bush is a complete failure in everything.
Would that be the uh, 2% drop or the less than 1% drop? It sounds like you have been drinking the ABCNNBCBS cool-aid. They make a 300 point drop out to be the same now as when the DJ was 1000.
Say what?!
W’s done pretty good for someone who was always against a capital gains tax cut, who gave an economic speech in front of boxes with fake “made in the USA” labels, and for someone who thinks massive numbers of uneducated illegal workers are the growth engine of our economy.
who do you believe??? who can you trust outside of Gloombur--my mistake, Bloomberg--and Cnbc???
/s
Last night, most media outlets were wringing their hands over yesterday’s drop in the Dow ,and of course, more than a few had to point out that the drop happened after the President made his speech. The media has to point up every negative and of course, whatever that negative is, even if it’s minor, it’s Bush’s fault.
No one in the mainstream media seems to get it that overall...except for a few relatively minor troubles...this has been one of the healthiest economies in years. And despite their propaganda to the contrary, 8 years of Clintonomics was a disaster for most of us.
Yep...the Houston “Comical” is just a glad wrag for liberal hand-wringing and propaganda. The sports section is marginal but the rest of the paper is bird cage liner.
Dude, a 300 plus point drop in a day is a huge drop and there have been a few other 100 plus drops recently as well. While this is not 1929 or 1987 for that matter, days like this week are what tend to put people on the run from the market.
It was the second worst day of the year.
In a year that we are still way up.
When markets are in their upper ranges any type of news can cause a panic and this week was no different. Media types will try to find some reasons for it but in the end the buyers and sellers will act in haste.
Actually it's not that great. The dollar has lost about 40% of it's value over the last 5 years - that more than offsets any wallstreet gains.
The EU's stock markets are doing just as well as the US and in fact recently surpassed the US in market value. They have been able to attain this without devaluing their currency.
We are going to have to pay the piper on Bush's out of control spending. It is devaluing the dollar and the prestige of the dollar is taking making hits. If it continues on this path, it will be replaced by the Euro as the world's reserve currency and the value of the dollar will fall even further due to decreased demand.
How does that work?
If it continues on this path, it will be replaced by the Euro as the world's reserve currency
That's funny!
On my Yahoo homepage, this was the lead story, accompanied by a picture of a For Sale sign in front of a house.
Why even bother with the headline - just get to the doom and gloom straight off...
Economy growth is best in a year
A newly constructed home waits for an owner in Bainbridge Twp., Ohio on Thursday, July 26, 2007. Sales of new homes fell in June by the largest amount in five months as the housing industry continued to struggle with its worst downturn in 16 years. The median home price also fell. (AP Photo/Amy Sancetta)
Excellent news.
I dont know, my stock portfolio is up greatly so whatever he is doing or not doing I hope the prez continues
There are few jobs where people can be wrong the vast majority of the time and still be employed and not only keep their jobs but also remain revered by their peers, two of these few jobs are economy analysts and journalists.
His thesis, backed up in stats is that population shifts to more affordable parts of the country (ie the South) make the price "decline" more pronounced than it actually is.
Guess all those nervous nellies watching the MSM news last night called their agents to 'Dump It All'. NOT!
Good news after last night's sell off in Tokyo.
I do love this though. The market climbs a wall of worry. As long as their is worry, the trend is still up. When people get giddy* it's time to sell.
Of course that adage doesn't apply to some of our posters, they've never had a day of giddy in their entire lives.
economy
ever
It must be fun being a sour puss.....
Yes, but your buying power is down which most likely means that you're net negative.
outside a burst in energy and food prices
Funny that is 30% of my families budget every month.
Then ride a bike, and start a vegetable garden.
Welcome to freerepublic.
Now go back and read the article: “A revival in business spending was a main force behind the energized performance.”
Heebert Harbert Hayfever.
You are on every economic thread as a sunshine pumper, so I know your posts aren’t to be taken seriously.
The dollar’s drop is real. I know you try to wave it away by saying that just makes american imports more affordable to the rest of the world, but that is overly simplistic and contrary to the overall effect. If devaluing currency was such a great thing then every nation in the world would just run their money printing presses 24/7 so they could join their economy would be “great” too.
We both know that the out of control government spending and the resulting devaluation of the dollar are very serious problems. Why you choose to ignore it is not clear.
Agreed.
A huge DROP out of a BUCKET of prosperity.
Stop being negative or else.
Because.
Economic growth rebounds in second quarter
Canada.com, Canada - 1 hour ago
... of last year on a surge in business investment, more government spending and a better trade performance, the Commerce Department reported on Friday. ...
On the way into work today radio news reports were primarily about DJIA being down yesterday and down so far this morning. Oh yea and they mentioned President Bush gave an economic speech but didn’t mention the two day down trend on the DJIA.
OTOH, as reported by Countrywide, the largest US mortgage lender, foreclosures are way up. Even home owners with good credit are falling behind on their home equity loans at record levels.
If that makes you feel better.
The dollar’s drop is real.
Depends on what currency you're looking at, but yes it is real.
I know you try to wave it away by saying that just makes american imports more affordable to the rest of the world
It also makes our imports more expensive.
If devaluing currency was such a great thing then every nation in the world would just run their money printing presses 24/7 so they could join their economy would be “great” too.
Who said it was a great thing? And if it's a bad thing, why do people whine about Japan and China keeping their currency weak?
We both know that the out of control government spending
Government spending sucks.
and the resulting devaluation of the dollar are very serious problems.
You think the dollar is going down because of government spending? I don't suppose you can show the relationship?
Let's go back to your original claim.
The dollar has lost about 40% of it's value over the last 5 years - that more than offsets any wallstreet gains.
If I bought $100,000 worth of the S&P 500 Index and it rose to $160,000 (not including dividends), why do I care if the dollar lost 28% against the Euro?
Tax cuts always have worked and always will. Corrections happen. They always happen and always will. look at market history. It always shocks me at the amount ‘sky is falling’ people who come out of the woodwork at the first sign of bad news. Especially on a supposedly free market capitalist website like Freerepublic.
Taxes have been cut.
Unemployment is at historic lows.
Stock market is (still at historic highs.
Growth since the Clinton/911 recession has been phenominal.
But, but, but the dollar. Grow up, there will always be a lagging indicator in any economy.
I do agree about government spending being too high though. But lets work to take care of that.
JMHO
I dont see it, we have no complaints but I can only speak for my situation
I was talking about what the news reported, not what actually is nor anything else going on with the economy. I really don’t think you needed to tell me to “Grow up”.
Worst economy since Hoobert Heever.
You are so very wrong...both on Hoover’s economy and his role and on the economy today.
Yeah, ignore record corporate earnings, record exports and record manufacturing output. Ignore the shrinking deficit and strong consumer and business spending. Never mind record household net worth. Ignore the stock market gains based on this news. It's all BS and smoke and mirrors. Too bad you weren't invested in the four year bull run. You lost out...big time.
Of course you leave out the the drastic dollar devaluation.
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