Free Republic
Browse · Search
General/Chat
Topics · Post Article

To: DaisyCutter

Look at the real data, such as state income tax inflow and state sales tax inflow. Both numbers continue to drop. Income is down, and purchases are down. There can be no real growth while that continues to be the case.

While I am not onboard completely that this marks recovery, the data you are focusing on are all trailing indicators not leading indicators. I think the big question for investors, consumers, and employers is how much will bammy/nancy/harry cost me? Until that is known, either through their defeat or success, the economy will not prosper. Basically, I sense that all the economic engines will remain on idle (trading water) until they know their costs/future. This most likely translates to gridlock in congress until 2010 which the economic engines would view as a positive for growth. Any legistlative success on healthcare and capntrade would be viewed as a negative and a drag on future sales (less descretionary dollars available to compete for).


13 posted on 01/29/2010 8:36:30 AM PST by equalitybeforethelaw
[ Post Reply | Private Reply | To 4 | View Replies ]


To: equalitybeforethelaw
We're comparing GDP to tax revenues, no? That's apples to apples as GDP is not a leading indicator either. GDP is the previous quarter. Sales tax figures are from the previous month, and they are showing a continued drop in consumption at the same time the government is claiming increases in consumption.

Until we clear out most of the bubble debts and ponzi finance, at best this economy will go sideways.

19 posted on 01/29/2010 8:59:47 AM PST by DaisyCutter
[ Post Reply | Private Reply | To 13 | View Replies ]

Free Republic
Browse · Search
General/Chat
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson