Posted on 09/28/2007 6:50:01 AM PDT by Always Right
Consumer Spending Posts Better-Than-Expected Gain While Inflation Eases
WASHINGTON (AP) -- Consumers shrugged off a rash of bad news to spend more than expected in August while a key measure of inflation eased to the slowest pace in 3 1/2 years.
The Commerce Department reported Friday that consumer spending rose by 0.6 percent in August, the best showing in four months and better than the 0.4 percent increase that had been expected. Incomes rose by 0.3 percent last month, slightly lower than had been expected.
A closely watched gauge of inflation was up just 1.8 percent in August, compared to the same period a year ago, the smallest increase since a similar rise in February 2004.
You will not see the headline “Consumer Spending Increases 50% More Than Expected.”
I know the housing problem is going to cause some pain, but the folks declaring that another Recession is upon us may need to rethink.
At some point you would think these idiots who always do the “expecting” would be given the boot, because they are ALWAYS wrong, whether its jobless claims, deficits, consumer spending, or whatever.
The Fed action has helped people become a lot more positive about the economy. The markets were collapsing until the Fed showed they would not let housing and the financials crash.
“At some point you would think these idiots who always do the “expecting” would be given the boot, because they are ALWAYS wrong, whether its jobless claims, deficits, consumer spending, or whatever.”
I want to see a comparison of the number of times that things were better than expected during Bush’s presidency versus the number of times things were worse than expected.
The way I see it, EVERY good report is a “surprise.”
You’re right that it’s overwhelmingly the fact that they “predict” worse news than actually happens, but even when they are optimistic, they are wrong. If your investment advisor was giving you this kind of advice, you’d fire him.
And if Hitlery gets elected, everything reported will be sunshine and roses.
Anyone else seeing a problem with this picture???
The media and some of the anti-bank consumer groups have done their best to turn this into a financial panic. So far it looks like they have not succeeded.
At the same time, gold today hit a 28-year high at $745.50 an ounce, its highest level since January 1980 when the metal rose to $850. What’s more, oil today rose above $83 a barrel and closed in on an all-time high in London, while the dollar index, a gauge of the greenback’s value against a basket of six major currencies, extended its decline on Friday, dropping to a record low.
Normally, of course, this shouldn’t be happening. If inflation is low, gold, oil and the dollar should be steady — or, alternatively, inflation should be high if the dollar is weak and oil and gold are expensive. Inflation is, after all, a monetary phenomenon.
So we are clearly seeing something out of the ordinary. Low inflation, despite a weak dollar and rising commodity prices. It would suggest for instance that 1) international holders of dollars are diversifying into other currencies, notably the euro, 2) global economic growth is raising demand for commodities and thus pushing up prices, and 3) geopolitical risk (especially in the Middle East and Persian Gulf) has people seeking safe havens, such as gold.
Those “experts” are surprised again. I suppose the experts expected that with the recent credit problems, we would be plunged into a devastating depression with everyone issued tin cups and crayons to fill in their “food wanted” sandwich boards we’d all be wearing. A better question if why were the experts deluded into thinking disaster was around the corner when the housing credit problem affected only a very small percentage of Americans?
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