Time to redouble our efforts, comrades! It’s not working:
The bruised economy limped through the first quarter, growing at just a 0.6 percent pace as housing and credit problems forced people and businesses alike to hunker down.
The country’s economic growth during January through March was the same as in the final three months of last year, the Commerce Department reported Wednesday. The statistic did not meet what economists consider the classic definition of a recession, which is a retraction of the economy. This means that although the economy is stuck in a rut, it is still managing to grow, even if modestly.
Low growth is nothing to brag on, but neither is it a recession – at least not yet. Which is remarkable, considering all the evaporated wealth represented by the housing slide, not to mention the concomitant frailty of the banking system, a weaker dollar, rising unemployment, the rise in so-called “non-core” consumer price indices and the tightness of credit markets. All of those taken together have been deliriously spun as a political crown of thorns to be shared between Alan Greenspan and Ben Bernanke by those of partisan bent and by alarmist media outlets, both of whom, for reasons of their own, prefer bad news to good. You will know them by their grudging admission that, “Well, we’re not technically in a recession, but (fill in a dire economic prediction here. Now link it to detested opposition politician. Repeat.)”
Two thirds of our domestic economy is driven by consumption, and what with all the noise we’ve been hearing about recession – that one is coming, that it’s near, that ZOMG! IT’S HERE!!1!, the fact that we haven’t yet tipped into negative growth for even one consecutive quarter is gratifying.
Especially for those, like me, leaving the sinecure of a cush gummint job in search o’ greener pastures.
…leaving the sinecure of a cush gummint job in search o’ greener pastures.
Sounds better than saying you’re getting thrown out for being too old.
I love collektin’ the Gubmint Cheez.
The Navy was definitely good to me.
What’s that saying? Oh, yeah.
“Old age and cunning will overcome youth and exuberance”
And the economy? I think the MSM has predicted five of the last zero recessions. Even that old cliche about the broken clock will eventually apply to their predictions and then they’ll say “SEE? We told you so!” while totally obfuscating the past disinformation campaign.
So, what else is new?
Got to look at the bright side-for some people, like me, this is a blessing. Interest rates are going down.
Well Skippy-san, at least most housing in “Mall-America” is going to be cheaper than in Tokyo. I thought you were going to be incommunicado at the S.O. Mother’s place for a while.
Out the door this am
And they are much greener, Lex – not quite as satisfying in comparison imho, but lots of opportunity for those not too “old in mind” to improvise, adapt and overcome.
No breaking out the champagne here. It is unfortunately, a sad report.
A very anemic 0.6% annual pace of GDP growth, artificially supported by rising inventories and cost increases, signifies we were not yet technically in a recession last quarter, but getting very close. Like hand grenades and horseshoes……..
Oy. Filterman seems to have the “glass is half empty” type of outlook. Every economy has lows and highs as well as ruts and surges.
The point of all of this is that it appears (at this point) to be a RUT as opposed to a LOW, regardless of how often or how loudly the press hollers “RECESSION!!1″
Let me preface this by saying I’m not an economist, just a news-junkie. A lot of the sense I’m getting (from comments and other feedback, not the actual stories as written) is most people seem to be waiting with baited breath on many little developments they’ve got going on, of their own. Nobody wants to get caught overextended and get wiped out if the cards don’t fall the way they’re hoping. That’s actually a real problem, as without risk there’s going to be no growth. All of this coming right on the eve of the boomer-retirement is just amplifying that.
I also wonder if people are starting to get “bubble fatigue,” after tech stocks, then housing, and now commodities are starting to follow the same patterns. A sort of “what next, while we catch our breath” pause from Joe Investor if you will. Problem is that that just sets the current money supply and investments on their own inertia while everybody tries to read tea leaves instead of making their own moves.