'This Economy Is Stronger Than Its Reputation'

BI ^ | 10-20-2015 | Myles Udland

[blam]

Myles Udland
October 20,2015

Is the economy about to tip into recession?

Strategists on Wall Street have talked about the US falling into an "earnings recession," a "revenue recession," and the possibility of a full-on economic recession that would see the economy shrink.

But in an email on Tuesday, Deutsche Bank economist Torsten Sløk wrote that despite the incessant drumbeat he hears from clients about an economy doing worse than people are willing to acknowledge, the exact opposite is in fact true: things are way better than people recognize.

"In client meetings I frequently hear statements such as 'the US economy is weak,' and 'there are too many problems for the Fed to hike rates' and 'things are not getting better,'" Sløk writes.

"Let’s take a look at the data: The chart below shows that lower income groups are currently close to all-time highs when it comes to optimism about the future. Think about this statistic next time someone talks to you about the declining participation rate, the lack of wage growth, and QE4. "This is not an economy that is about to enter recession."

(snip)

[blam]

My neighbor has a large landscaping company and last night he said that his phones are 'ringing off the hook.'

[griswold3]

“that lower income groups are currently close to all-time highs when it comes to optimism about the future”
Of course, they see an increase in bennies from the govt. Why not be positive?
In ag, there’s a significant drop in income ahead.

[headstamp 2]

The economy is so red hot interest rates are zero.

[G Larry]

ya...95 Million Americans out of the workforce....that’s how I measure the “strength” of the economy.

315 M Citizens.
minus 20% too young or old to be considered “workforce”
leave 252 M in workforce age.

37.5% unemployment

[traderrob6]

BWAAAAAHAHAHA, you have quite a sense of humor.

[jwalsh07]

Median income is down 1.5% year over year and down 6.5% since 2007. Walmart earnings in decline which is an indication that lower earners are earning less. I mean where is all the consumer spending going to come from?

[Georgia Girl 2]

94 million people out of work. It just doesn’t get better than that. :-)

[M Kehoe]

“The economy is so red hot interest rates are zero.”

So much for what Slok thinks. Oh, it’s BI...

5.56mm

[khelus]

ROFLMA

Oh... you mean Myles isn’t a stand up comic !