Thursday, May 8, 2008
What happened to the recession we are suppose to be in?
Remember the official definition of a recession is two consecutive
quarters or more of negative growth. The last quarter of 2007 was
0.6% positive. The first quarter of 2008 was slow
but it was not negative. It also had a 0.6% rise. Not good but not negative.
I would not be surprised if that was revised up.
Since the Bush tax cut and economic recovery we have NOT had ONE
negative quarter of growth.
And unemployment was down to 5.0%(4.95%) At one time 5% was considered
full employment. Retail sales were up.
Home sales are down. Home prices are down. Normally when prices go down on something
that's when it's time to buy. So, if you want to buy real estate, now is the time.
With all the negative campaigning that the presidential candidates are doing
about the economy, that by itself may be enough to get people to stop spending.
Thereby causing a recession. Then they can say that it just shows that the
present administration's plan for the economy is not working.
And that's what some would hope for, because it would help their chances for president.
It's all about self interest.
"October 1992, when President George Herbert Walker Bush ran for re-election against Bill Clinton,
the economy was 18 months into a recovery
But as Investor's Business Daily noted, 90% of the newspaper stories on the economy were
negative. Yet the following month, when Clinton defeated Bush 41, suddenly only 14% of
economic news stories were negative!
But only a cynic would suggest a liberal media bias."
Posted by Kliph at 9:33 PM