Posted on 08/30/2007 7:32:44 AM PDT by kristinn
The economy grew at its strongest pace in more than a year during the spring as solid improvements in international trade and business investment helped offset weakness in housing. The gross domestic product, the broadest measure of economic health, expanded at an annual rate of 4 percent in the April-June quarter, significantly higher than the 3.4 percent rate the government had initially estimated a month ago, the Commerce Department reported Thursday.
But the growth spurt could be short-lived. There are concerns that the recent turmoil in financial markets, a result of a spreading credit crisis, could seriously dampen economic activity in the second half of this year.
GDP growth may have slowed to just above 2 percent in the current quarter and many analysts believe growth will slow even further in the final three months of this year as the full impact of the recent market turmoil is felt.
The worry is that the roller coaster ride in stocks and spreading credit problems will shake consumer and business confidence and cause cutbacks in spending and hiring plans.
However, analysts believe the Federal Reserve will act to avert a full-blown recession. If financial turmoil persists, they think the Fed will wield its major policy tool, cutting its target for the federal funds rate, the interest that banks charge each other.
SNIP
In other economic news, the Labor Department reported that the number of newly laid off workers filing for unemployment benefits rose to 334,000 last week, an increase of 9,000 from the previous week. That gain caught analysts by surprise. They had been expecting a decline of around 2,000.
(Excerpt) Read more at newsobserver.com ...
"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
Good news? How can this be?
Yes it is, with this there is less of a chance of an inflationary rate cut.
Didn’t George Bush already ruin the economy?
The economy is too strong to cut rates, but so weak that we’re about to tip into recession?
Does anyone know offhand what the projected budget deficit for 2007 was? I would suspect that at the end of the fiscal year in October it will come in less than projected.
"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
Herbert Hoover is finally resting in peace knowing that he has been surpassed by President Bush as worst for the economy in history.
The economy grew at its strongest pace in more than a year ...
But the growth spurt could be short-lived.
There are concerns ...
recent turmoil in financial markets ...
spreading credit crisis ...
GDP growth may have slowed ...
growth will slow even further ...
cutbacks in spending and hiring plans.
a full-blown recession.
Ummmmmmmm, How did we get from "A" to "B" here?
That's what makes a market...
I recall in 1999-2000 election campaign Bush was criticised for commenting on a looming recession and was chastised by the media that he would cause it to happen by talking about it...interesting that they don’t seem to be concerned that their comments may wreak havoc on our economy...seems a bit hypocritical to me
Thanks for posting this good news that we probably will not see in the MSM
The latest estimate is about 150 to 160 billion dollars. That’s about forty to fifty billion less than first estimated.
MINORITIES AND WOMEN HIT HARDEST
The purpose of government is to stop runaway economic growth. The growth spurt will be just that.
Crutsinger/AP: Charter members of the “But-Monkey” club.
Didja find this on the back page?
I’m upset with Bush over his amnesty nonsense. But his tax rate reductions were monumental in taking us out of the clinton recession. Clinton had everything going for him when he took office. We were coming out of a recession when he took over, and we had a technology boom that he had absolutely nothing to do with. In fact I believe his lawsuit against Microsoft was the tipping point that caused the stock market to tank in 2000.
The Bush tax rate reductions have increased jobs, wages and revenues to the federal government. Just as the Kennedy and Reagan tax rate reductions did. I think the solution to the credit crunch is not the fed. It’s another round of tax rate reductions. It’s becoming energy independent. It’s deporting illegals and cutting the trial lawyers down to size. Doing these things would get us out of the red and back into surpluses.
Not really since these reports are backward looking and the Fed actions are predicated on what it sees 6-9 months down the road.
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