It’s the Two Economies, Silly

[Omaha Steve]

http://blog.aflcio.org/2007/05/31/its-the-two-economies-silly/

It’s the Two Economies, Silly

by Tula Connell, May 31, 2007

The business sections of the major media are looking a bit grim these days—with the exception of the stock market, which has soared to record highs.

Beyond the Dow Jones listings, the subprime mortgage disaster—and the related massive number of foreclosures—is making a lot of headlines. As is the news about endlessly soaring cost of gas and tanking home prices.

It’s hard to put a rosy glow on much of the economic news, but if any media outlet is up to the task, it’s The Wall Street Journal.

In advance of the latest bad news—today’s Commerce Department report that the U.S. economy grew last quarter at a 0.6 percent annual rate, the weakest in more than four years—WSJ columnist Justin Lahart framed it thus (subscription required):

Good news! The economy was even weaker last quarter than originally thought.

The convoluted point he tried to make essentially boils down to this: U.S. economic growth is so slow now, it can only go up from here.

The revised gross domestic product (GDP) figures compare unfavorably with the 3 percent pace initially estimated last month. Yet, some economists are predicting the nation has hit bottom and growth will improve, along with the housing market. Those same economists also predicted the housing crisis would not be nearly as bad as it has turned out to be.

FULL story at link.

[Demeter]

1. How Soon They Forget!

I've got the family stories of the Great Depression right here, if any of these shiny new 20 and 30 somethings want some idea of just how bad it can get, and how fast, and why....

[Joanne98]

2. BRAVO!