IS ANOTHER RECESSION ON THE HORIZON?
Is up down? Or is down up? Who knows anymore …
Last week we wrote of the “double seasonal adjustment” to the U.S. economy’s first quarter gross domestic product data – which was expected to turn 0.2 percent “growth” into 1.8 percent growth. Well now we’ve got the “second” official estimate of first quarter growth (.pdf here) – in which 0.2 percent “up” has suddenly become a 0.7 percent down.
As in a contraction …
So much for all those “rainbows and unicorns” predictions, right?
Meanwhile second quarter growth estimates (as of June 1) are currently hovering at 0.8 percent … unchanged from the previous week’s depressing outlook.
What gives? It’s easy: The economy is stuck because consumers have no money to spend. And they have no money to spend because their’s rampant joblessness and zero income growth.
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There is no upturn. Our economy will not improve until conservatives gain control of the WH as well as both houses of Congress. Say what you think, but the two years that happened reversed the trend and that is why Clinton looked good his first term. He knew he had to compromise with conservatives. But then liberals were voted back in controlling the senate and it's been going downhill since.
ReplyDeletehow can you have another one when you're not out of the first one?
ReplyDeleteRecord highs on Wall Street Should not be confused with an economic upturn.
ReplyDeleteYou are right 9:01. The Fed has just created the next bubble.
ReplyDelete