Summer of Recovery? Economists concede forcasts will be cut in half

[teapartysamurai]

WASHINGTON (AP) - The government is about to confirm what many people have felt for some time: The economy barely has a pulse.

The Commerce Department on Friday will revise its estimate for economic growth in the April-to-June period and Wall Street economists forecast it will be cut almost in half, to a 1.4 percent annual rate from 2.4 percent.

That's a sharp slowdown from the first quarter, when the economy grew at a 3.7 percent annual rate, and economists say it's a taste of the weakness to come. The current quarter isn't expected to be much better, with many economists forecasting growth of only 1.7 percent.

Such slow growth won't feel much like an economic recovery and won't lead to much hiring. The unemployment rate, now at 9.5 percent, could even rise by the end of the year.

Much more here:

My Way News - Snapshot of economy about to get a lot bleaker

Remember when liberals told us during Bush's admin, that we were in a "jobless recovery?"

Let's review the employment numbers for Bush vs. Obama!

2000- 4.0%
2001- 4.7%
2002- 5.8%
2003- 6.0%
2004- 5.5%
2005- 5.1%
2006- 4.6%
2007- 4.6%
2008- 5.8%

NOW LET'S EXAMINE WHAT HAPPENS WHEN OBAMA TAKES OFFICE???????

2009- 9.3%
2010YTD - 9.9%

United States Unemployment data

So, once again liberals come to eat their own words. WHO'S IN A JOBLESS "RECOVERY?????"

It sure isn't Bush! November is coming!

 

[waltky]

Granny says somebody oughta clue `em in - nobody got no money, dey's tapped out dat's why...

Fed: Consumer Thrift Will Hamper Recovery
March 25, 2011 – Following a new survey of consumer finances by the Federal Reserve, one of the organization’s board members has suggested that spending will be slow to recover.

This week’s Survey of Consumer Finances uses an analysis of Americans’ balance sheets during and after the Great Recession to find that about two-thirds of American families saw their net worth drop between 2007 and 2009. A good chunk of those households were particularly hard-hit, with the Fed finding that 43% saw a decline equivalent to six-months’ total household income. As expected, the belt-tightening and increasing debt brought about by the recession is responsible for increased savings and decreased spending, as one would expect. Americans also moved toward safer portfolios and pushed their average retirement age back by about a year.

But somewhat surprisingly, this newfound thriftiness prevailed even among those who hadn’t been substantially impacted by the recession. “Overall, the data suggest a shift toward caution,” found the authors of the study. “Most families – especially those whose position in the wealth distribution improved – reported a desire for less risk and for higher reserve savings.” In a speech delivered to the Virginia Association of Economists, Fed Governor Elizabeth A. Duke suggested that the scale of the recession had led to a widespread shift toward risk aversion and frugality.

“The varied change in wealth for pre-retirement families, taken together with the changes in retirement plans, risk attitudes and willingness to spend in response to changes in wealth imply that some of the effects of recent economic turmoil may result in a longer period of economic adjustment than has been the case in past recessions, as fundamental attitudes appear to have shifted,” she said. In other words, Americans are so spooked by the recession that it will be awhile before they’re comfortable spending again – which will make the eventual economic recovery slower than expected.

Source