Posted on 08/31/2007 11:51:26 PM PDT by JohnHuang2
JACKSON HOLE, Wyo., Aug. 31 -- Federal Reserve Chairman Ben S. Bernanke Friday said that the central bank will take action to prevent problems in the financial markets from disrupting the U.S. economy, if necessary. In the speech here, Bernanke laid out his thinking on the troubled credit markets publicly for the first time. Continued...
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The good news is we're doomed!
It is absurd and stupid to bet against the U.S. economy -- which is precisely why liberals are betting against the U.S. economy. Liberals have been cheerleading recession for years -- beginning right at the end of the Clinton recession that Bush inherited -- but still haven’t produced a single recession since Bush cut taxes. For a recession, libbies would need two straight quarters of no economic growth.
In fact, even in the midst of 'The Worst Housing Slump In Human History', these are the stats:
* In July, capacity utilization rose to 81.9 -- highest level since September.
* Industrial capacity and industrial production have jumped in the past year. Industrial production alone is up almost 3% (annualized rate) in the past 3 months. Manufacturing output jumped 3.9% for the second quarter; July's gain suggests output rising in the range of 3% or more for the third quarter. Motor-vehicle output jumped 2.6% in July. It was up 2.4% in June.
* Orders for American-made durable goods surged 5.9% in July -- biggest increase in about a year. Economists had been predicting a 1.5% increase. July's big surge in demand for long-lasting goods -- from airplanes to computers to machinery -- means the third quarter began at a blow-out pace and suggests The Surge is working!
* Total retail sales in July rose a 'better than expected' 0.3%, with clothing store sales surging by 1.3%, furniture store sales surging by 0.5% and a surge of 1.0% in sales of electronics. Department stores logged a 'better than expected' 1.6% sales increase during the month. Overall, retail sales have surged by nearly 5% these past three months (annualized rate).
* The Conference Board reported that its index of leading indicators rose 0.4% in July to 138.1, "bolstered by consumer expectations, vendor performance and initial claims for unemployment insurance," CNN admitted.
* Even more dismal, second-quarter GDP growth was revised higher, to 4% annually, up from the 3.4% first reported. And third-quarter growth will come in at around 3% or slightly less. The worst economy since Herbert Hoover.
* Consumer prices in July rose a tame 0.1%, down from June's 0.2% reading, while July's core CPI increased just 0.2%, same as June. The 12-month increase in core CPI is just 2.2%.
* The price for regular unleaded averaged well over 3 bucks a gallon in May -- it's since fallen about a half buck a gallon.
* Business productivity rose at an annualized rate of 1.8% in the second quarter, more than double that of the first quarter.
* Because Bush has cut taxes three times, the budget deficit is shrinking — this year it’ll come in $90 billion lower than last year, at around $158 billion, or 1.2% of GDP, compared to 3.5% of GDP in '03, and down from the peak deficit of $413 billion in '04. Because Bush cut taxes an average of $2,216 for 113 million Americans, the economy has added new jobs for 4 years straight, more than 8 million since August 2003, more than 2 million in the past year, pushing the unemployment rate to 4.6%, below the average for the past 40 years (6%), even as real wages have been growing at a faster rate in the past 15 months than during the last years of the "Clinton boom" that liberals keep yapping about. After-tax real income has gone up around $3,000 per person during Bush’s Presidency. Household disposable income is projected to grow by $550 billion this year. Clearly, we’re doomed.
* New home sales jumped 2.8% in July to a seasonally adjusted annualized pace of 870,000. Inventories for unsold homes dropped for the fourth month in a row -- down 7% since July '06. Using their trusty economic models, economists had predicted 50,000 fewer homes would be sold for the month.
Liberals love to point to the just-released report on existing home sales, which came in bearish, but libbies are smoking some funny weed because the "HOUSING CRISIS" didn't just begin -- it started some six months ago, yet prices on existing homes were down just 3% (year-over-year), and that's after surging 25% on average in the past four years. And despite weeks and weeks of liberals screaming CREDIT CRUNCH! RECESSION! HOUSING SLUMP!, the consumer confidence number for August came in well over 100 (105). If we were headed into recession, consumer confidence would be 30 to 40 points lower.
To be continued.
"JohnHuang2"
8/28/07
Wishing y’all a great Labor Day weekend.
The question is ... If all our major corporations are doing most of their work overseas, how can the Fed exercise any longer exercise any control over our economy? The folks doing the borrowing to expand operations are going to be largely in some other country, so it would seem like a reduction of interest rates would now have a bigger effect in Bangalore than in Atlanta(?)
John, you know that "objective journalism" is just self promotion on an industrial scale! And that "liberals" (e.g. George Stephanopolis before his journalism gig, and Walter Chronkite after his) are just "objective journalists" who don't presently have jobs as reporters.You have some nerve pointing out that the sky isn't falling, when there isn't even a Democrat in the White House!
While we are busy whining about indigent homeowners, Rome (the bond market) is burning. The Fed opened the discount window but nobody is buying.
The panic by bond traders will spread soon as corporations run out of money for operations and layoffs shoot up.
Please talk about the real problem !
BUMP
Thank you so very much for this great wrap-up!
JH,
It’s completely unfair of you to dis this countries fine economists....just because all the liberal economists failed math. The claim that they can only add and subtract when a Dem president’s in office is patently absurd! Clearly somewhere an economist, even as we speak, is writing something nice about the economy...which will be instantly twisted into a negative as it hits the presses in the morning. Oh, and aren’t you forgetting, it’s summer! The economy always looks rosier in the summer...now that we don’t have strikes to worry about any more! And I think you were a bit pessimistic on the Deficit...we’ll be under $150bil by the end of the 2nd revision. :)
Well, that's your problem. You're starting from a false premise.
---Harvard Economic Society, October 19, 1929
Phooey on all the "nattering nay-bobs of negativity!!!"
Hey Grampa Dave! I'm gonna be over in your neck of the woods this afternoon...
We are DOOMED!
Thank goodness! lol
You know how I love your insight, and your beautiful gift with words.
Have a wonderful weekend, and Labor Day, ya’sef. ;o)
“Phooey on all the “nattering nay-bobs of negativity!!!”
Well, bump yo self. ;o)
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