posted on Jul, 30 2010 @ 11:38 PM
From today's NYTimes.com:
There is no more disputing it: the economic recovery in the United States has indeed slowed.
The nation’s economy has been growing for a year, with few new jobs to show for it. Now, with growth at an annual rate of 2.4 percent in the second
quarter, and federal stimulus measures fading, the jobs outlook appears even more discouraging.
“Given how weak the labor market is, how long we’ve been without real growth, the rest of this year is probably still going to feel like a
recession,” said Prajakta Bhide, a research analyst for the United States economy at Roubini Global Economics. “It’s still positive growth —
rather than contraction — but it’s going to be very, very protracted.”
A Commerce Department report on Friday showed that the economy had grown at a faster pace earlier in the recovery, expanding at an annual rate of 5
percent at the end of 2009 and 3.7 percent in the first quarter of 2010. Consumer spending, however, was weaker than initially believed.
Many economists are forecasting a further slowdown in the second half of the year, perhaps around an annual rate of 1.5 percent. That is largely
because businesses have refilled the stockroom shelves that they had whittled down during the financial crisis, meaning there will not be much need
for additional inventory orders.
Fiscal stimulus policies are also expiring, which may further drag on growth. And individual stimulus programs like expanded unemployment benefits
have faced huge political battles each time they have come up for extension in Congress.
The approaching mid-term elections may further entrench the political stalemate after Congress returns from its August recess. As a result, pressure
will probably increase on the Federal Reserve to use its tools to prevent a double-dip. Recent reports from Fed officials suggest the central bank has
become increasingly worried about where the economy is headed.
This surprises you?
With game changing health care laws that are about to start phasing into place...
With game changing laws applied to the finical sector...
Is anyone surprised that rich people have decided to radically ramp down discretionary spending? Is anyone surprised that companies don't want to
hire new employees until they know the real world implications of all the new laws?
....Who among you didn't think this would happen?
Plenty more where this is coming from!