The Economy Line: Greenspan Upbeat On Economy

George W. Bush ^ | September 9, 2004

[RWR8189]

Greenspan Delivers Positive Economic Assessment.  "Federal Reserve Chairman Alan Greenspan said Wednesday the economy has 'regained some traction' after a late spring slowdown that was triggered by a sharp spike in oil prices. Greenspan's moderately upbeat forecast was likely to cement expectations that the central bank will raise interest rates for a third time when Fed policy-makers meet in two weeks. In testimony prepared for the House Budget Committee, Greenspan said that two key indicators, consumer spending and housing construction, bounced back in July after a weak performance in June."  (Martin Crutsinger, "Greenspan Says Economy Has Regained Some Traction," The Associated Press, 9/9/04)

Mortgage Applications Hit Four-Month High.  "Mortgage applications rose last week to the highest level in four months, according to a private survey. The survey, the Mortgage Bankers Association's gauge of loan applications, increased 7.7 percent to 692, the highest since the week ended May 7, from 642.7 a week earlier, the association said.  Applications to purchase homes rose 7.4 percent to 476, close to the record of 501.6 that was reached in January."  ("Loan Applications Rise," The New York Times, 9/9/04)

Oil Prices Decline Further.  "Oil prices declined further today, despite fears of a hurricane in the Caribbean disrupting supply from the US offshore oil and gas production in the Gulf of Mexico.  Oil prices declined in response to the OPEC leader’s statement regarding excess supply in the global oil market."  ("Oil Prices Decline Further, Despite Caribbean Hurricane," New Ratings, 9/9/04)

[BrucefromMtVernon]

America's economic illiteracy is at an all-time high, what with those who confuse speculation with production in arriving at a definition of economic growth.