More good economy news

[Rob67]

Well this is certainly good news...

Bloomberg Economy Report

Rob

[jwd]

Great news for America....bad, bad, bad news for Kerry.

[Hawkeye]

that was all freaking jiberish crap to me. All I know is people are still loosing jobs by the truckloads and gas prices are soaring. I don't give a rats ass about what Bloomigderg has to say about quarterly 4.6 increases up from 4.3 percent.

[gldstwmn]

Originally Posted by jwd

Great news for America....bad, bad, bad news for Kerry.

Could you enlighten me as to what this report is saying about our economy?

[strandinthewind]

The most telling news that the economy is recovering is CNN is reporting Greenspan hinted at an interest rate hike to forstall apparently an overheated recovery. Food for Thought.

[jwd]

gldstwmn:

Could you enlighten me as to what this report is saying about our economy?

You're not serious. Surely you can read. Even if I told you what I thought it meant, you would not agree with me. It might be more interesting for you to tell me what it DOESN'T mean.

[strandinthewind]

Originally Posted by jwd

You're not serious. Surely you can read. Even if I told you what I thought it meant, you would not agree with me. It might be more interesting for you to tell me what it DOESN'T mean.

Well, for one, I am cautious about the actual number of new jobs created. The way that number is determined is not defined. Sometimes, "they" include things that are not really new jobs like union workers returning from a strike, etc. So, I am skeptical. In the end though, the overall economy clearly has improved, but the jobs are not following as fast as one would think they would. I mean if manufacturing demand is up, where is the corresponding job increase that accompanies that? The numbers in this article are not refective of that sustained increase That is my issue with the Bush economy. That and the fact that the number of job sent overseas grossly outnumbers these "new" jobs and the govt. now owes so much money that tax increases are a necessity. So, W gets, at best, a D from me in economic policy.

[gldstwmn]

Originally Posted by jwd

You're not serious. Surely you can read. Even if I told you what I thought it meant, you would not agree with me. It might be more interesting for you to tell me what it DOESN'T mean.

No, I was hoping you or Rob could break it down in your own words. I'm interested as to what this means to you as a fiscal conservative.

[gldstwmn]

Originally Posted by strandinthewind

The most telling news that the economy is recovering is CNN is reporting Greenspan hinted at an interest rate hike to forstall apparently an overheated recovery. Food for Thought.

He did? When? In his speech yesterday he said (I'm paraphrasing) it was still too soon as we had seen the end of deflation but we still hadn't seen strong enough signs of inflation. The FOMC meets may 4. The beige book comes out today. That should foretell a lot about what's going to happen on May 4.

[strandinthewind]

Originally Posted by gldstwmn

He did? When? In his speech yesterday he said (I'm paraphrasing) it was still too soon as we had seen the end of deflation but we still hadn't seen strong enough signs of inflation. The FOMC meets may 4. The beige book comes out today. That should foretell a lot about what's going to happen on May 4.

http://money.cnn.com/2004/04/21/news...ex.htm?cnn=yes

Greenspan: Rates must rise

Fed chairman says inflation in check for now, but economy stronger, and Fed will act eventually.
April 21, 2004: 10:19 AM EDT

NEW YORK (CNN/Money) - The U.S. economy is growing with more vigor, and interest rates must eventually rise to keep inflation in check, Federal Reserve Chairman Alan Greenspan said Wednesday, another hint that a Fed rate hike is nearing.

While the threat of "disinflation," or a lack of corporate pricing power, seems to have faded, inflation is still dormant so far, since labor costs are flat, the central bank chairman said in prepared remarks delivered to the Joint Economic Committee of Congress.


"But the Federal Reserve recognizes that sustained prosperity requires the maintenance of price stability and will act, as necessary, to ensure that outcome," he added.

Fed policy makers are scheduled to meet May 4 to discuss the economy and their target for the federal funds rate, an overnight bank lending rate that influences other rates throughout the economy. Few analysts expect a rate increase at that meeting, but market participants expect a rate hike to come at the Fed's August policy meeting.

In listing signs of an economic acceleration this year, Greenspan cited a faster rate of growth in gross domestic product (GDP), strong consumer and business spending, a recovery in factory output, a bounce in exports, and a labor market that's "gradually improving."

"Looking forward, the prospects for sustaining solid economic growth in the period ahead are good," he said.

But he also warned that businesses still seemed cautious about spending on factory improvements, inventory building and hiring. He also noted that the recent boom in productivity, or output per worker hour, wasn't quite over yet, as companies continue to use technology to run more efficiently.

If demand is still strong when that process finally runs its course, Greenspan said, then hiring will need to accelerate, putting upward pressure on wages and, eventually, consumer prices.

"Should such an acceleration of costs persist ... higher price inflation would inevitably follow," Greenspan said.

Nevertheless, he indicated that such inflation wasn't exactly right around the corner.

"Still-significant productivity growth and a sizable margin of underutilized resources, to date, have checked any sustained acceleration of the general price level and should continue to do so for a time," he said.