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| It should be noted and MSNBC ignores this entirely that the Fed was jacking rates up to purposely slow the economy down to a 2.5 - 3% annual growth rate. This report indicates success not failure. |
Posted on 07/28/2006 6:28:20 AM PDT by Hydroshock
WASHINGTON - The economy’s growth slowed sharply in the second quarter, logging just a 2.5 percent pace as consumers tightened their belts and spending on home building dived. Inflation, however, shot up.
The latest snapshot of gross domestic product released by the Commerce Department on Friday showed that the overall pace of economic activity in the April-to-June quarter was less than half that of the January-to-March quarter, when the economy zipped along at a 5.6 percent annual rate, the fastest in 2 1/2 years.
Gross domestic product measures the value of all goods and services produced within the United States and is considered the best barometer of the country’s economic standing.
The second-quarter’s performance — which reflected the bite of high energy prices and rising interest rates on people and businesses as well as a cooling in the once red-hot housing market — was weaker than the 3 percent pace analysts were forecasting.
(Excerpt) Read more at msnbc.msn.com ...
Oh, how happy MSNBC must have been to report this.
vaudine
I suppose we better get ready to plant our fall gardens--sure would hate for any of us to starve in this bad economy.
Still gives us a very fast 4.05 first half growth rate, better than most, if not all G7 countries.
Not bad at all.
Especially after all those rates increases and high oil prices.
And markets are up this morning.
Just to put this in perspective, Germany heralded their growth rate recently as quite an accomplishment. What was the growth rate for Germany? 1.2%.
Yes indeed. And our percentage of our budget deficit to our national debt, and the % of our national debt to our GDP, or Gross Domestic (National) Product is the envy of the EU.
When does the report come out on page 47 section H that states "Economic Growth Rate Higher Than Originally Reported"? This has been the norm for economic indicators for the last several years. AND, why is 2.5% a disaster. Sure it is a decline from >5%, but still not bad for 2ed Qtr numbers.
Now the folks who are living in homes three times larger than what they need and heating with oil have a problem; the folks driving pickup trucks who could make do with a Geo Metro will have a problem; the folks who MUST have that foreign vacation will pay for the jet fuel.
Just imagine how bad things would be if Democrats were in power!!! Jimmy Carter 20% interest rates, et. al...
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| It should be noted and MSNBC ignores this entirely that the Fed was jacking rates up to purposely slow the economy down to a 2.5 - 3% annual growth rate. This report indicates success not failure. |
A 5.6% is unsubstainable and being that inflation is lagging, was likely too hot. A 2.5-3.0% is the "Goldilocks" economy. Not too hot, not too cold.
Now the folks who are living in homes three times larger than what they need and heating with oil have a problem; the folks driving pickup trucks who could make do with a Geo Metro will have a problem; the folks who MUST have that foreign vacation will pay for the jet fuel.
Never mind MSNBC, in the bizarro world of the stock market this is almost literally like waking up with a winning lottery ticket. Every stock in the market went straight up at the open.
They are ecstatic. But they are happier when they are twisting the numbers to fit their presupposed notions, and happiest when burying the good numbers, or downplaying the significance of the positive economic numbers.
Where is the inflation part????? Dumbasses.
The Fed is raising rates to intentionally slow down the economy, yet this is reported as "news."
Oh darn. And the DOW is up 89 points.
"What most people forget is that we are an oil producing nation and many of our citizens do quite well when oil spikes; our coal and natural gas folks are not doing too badly either"
Oh yes.
That is exactly right.
I know it's anecdotal, but I'm sure we are not the only family who has cut our trips by about 25% because of the high gas prices. You don't buy nearly as much when you don't go shopping as often, so you save not only gas money but money on impulse purchases as well. That is bound to cost the economy.
".....better than most, if not all G7 countries."
My first thought on reading the article was "...JUST 2.5%..damn the Euros would kill for GNP growth that large".
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