Now...
"Consumer spending inches up; 0.2% gain in April belies consumers' darkening sentiment about economy" by Associated Press | May 31, 2008
WASHINGTON - The first round of economic stimulus checks gave a boost to personal incomes in April but a huge question remains: Will people spend the checks quickly enough to keep the economy afloat?
The Commerce Department reported yesterday that consumer spending barely budged in April, rising a tiny 0.2 percent, and income growth was just as weak, also increasing 0.2 percent.
Where's that salt shaker?
The growth in incomes, restrained by four straight months of job losses, would have been just 0.1 percent had it not been for the first wave of economic stimulus payments the government started sending out April 28. The impact on incomes should be even larger in the May and June reports, reflecting the bulk of the payments....
Yeah, giving you back YOUR MONEY -- so go out and spend it, America!!!
Maybe you can get MasterCard more profit, huh?
The checks are the centerpiece of a $168 billion stimulus package that Congress passed at President Bush's urging in February with the aim of jump-starting the stalled economy. Analysts said whether the checks will keep the economy out of a recession will depend on how fast people spend the money.
Yeah, yeah, yeah, government to the rescue. I'm sick of that lie, too!!!
Looters!!!! They are kicking YOUR OWN $$$ back to him!!!
On Wall Street, the Dow Jones industrial average fell slightly yesterday, losing 7.90 points to close at 12,638.32. That left the Dow up 1.27 percent for the week, a rebound from sharp losses incurred in the previous week.
Despite worries that consumers may end up using their stimulus checks to pay off credit card debt rather than spending the money to boost the economy, analysts said they believe about two-thirds of the money will get spent this year, enough to keep the overall economy in positive territory, as measured by the gross domestic product.
The government on Thursday revised its estimate of first quarter GDP growth up to a rate of 0.9 percent, slightly better than the 0.6 percent originally forecast. While many economists had believed the economy will slip into negative territory during the current April-June quarter, the modest growth in consumer spending in April and hopes of better figures going forward are causing analysts to revise their estimates upward.
Now, whom to believe?
David Wyss, chief economist at Standard & Poor's in New York, said GDP growth could come in around 0.5 percent in the current quarter and then rebound to around 2 percent in the July-September quarter, as consumers spend their stimulus checks:
"So far, the economy is proving more resilient than we gave it credit for."
Doo-doo-doo-doo-doo-doo-doo-doo!!!!
Brian Bethune, chief US financial economist at Global Insight:
"There is considerable risk that the tax rebates will only put a Band-Aid over a large and growing wound to consumer sentiment with a rising possibility of a sharp pullback in spending later in 2008 or in early 2009."
Mark Zandi, chief economist at Moody's Economy.com:
"Nothing is going right. Jobs are down, the stock market is wobbly, home prices are plunging, and gasoline prices are at record highs."
"Economy may lag, but no recession; N.E. forecast sees wider class divide" by Robert Gavin, Globe Staff | May 31, 2008
The Massachusetts economy will avoid a recession, but high energy costs, the struggling housing market, and anemic job growth will make many people, particularly the poor and less educated, feel like they're in one, according to a new economic forecast....
Well, if it looks like it, smells like it, and tastes like it, it usually is shit.
Naw, discard all your senses and admit to yourself you are crazy, readers.
Uh-huh!
Overall, the outlook for the state and New England appears glum in coming years....
The housing slump, meanwhile, continues to threaten the broader economy, Eric S. Rosengren, president of the Boston Federal Reserve Bank. Delinquencies are rising sharply for home-equity lines of credit, a sign of increasing stress among consumers, whose spending accounts for about 70 percent of national economic activity. These loans, tied to the equity built up in their property, typically are used to finance home improvements and major purchases such as cars.
Rosengren noted these loans are not considered subprime, risky loans made to people with spotty credit and few, if any, assets. Delinquencies in equity lines of credit, which represent about one-third of residential mortgages held by banks, are exceeding the rates of the early '90s, Rosengren said.
Other consumer loans, particularly in parts of the country hardest hit by the housing bust, also are experiencing rising delinquencies, Rosengren said.
Ultimately, if delinquencies spread across consumer loans, more banks will be put at risk. That could worsen the credit crunch contributing to the national downturn as banks try to protect capital by making fewer loans...."
Where did the $200 BILLION dollar bailout go?
I thought it was injected so banks could continue to make loans?
Gee, that isn't looking to good, is it?