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AP: We Are/Aren’t Finally In A Recession

From the Obama campaign’s Associated Press:


Economy shrinks as consumers cut back on spending

WASHINGTON – A day after the Federal Reserve slashed a key interest rate to battle an economic downturn, the government reported Thursday the economy did shrink in the summer, sending the strongest signal yet that a recession may have already begun.

The Commerce Department reported that the gross domestic product, the broadest measure of economic health, fell at an annual rate of 0.3 percent in the July-September period, a significant slowdown after growth of 2.8 percent in the prior quarter

The classic definition of a recession is two consecutive quarters of negative GDP. Many analysts believe the GDP will decline in the current October-December period by an even larger amount and they are forecasting a negative GDP figure in the first three months of next year.

The National Bureau of Economic Research, which is the official arbiter of recessions in this country, has not said when it will make its determination of whether the country has entered a recession.

Meanwhile, the Labor Department reported Thursday that applications for unemployment benefits remained at an elevated level last week, another sign of the economy’s struggles. The number of laid-off workers filing new claims totaled 479,000, the same as the previous week, disappointing analysts who had expected a small drop.

On Wednesday, the Fed cut the federal funds rate — the interest banks charge each other on overnight loans — by half a percentage point, and the government finally began distributing funds from the billions in the financial rescue package.

Those efforts were part of a concerted drive by officials, just days before a national election, to demonstrate they are moving as quickly as possible to deal with the most serious financial crisis to hit the country since the 1930s.

Analysts also noted that just lowering rates cannot serve as a panacea to overcome a credit crisis

Meanwhile, the administration announced that the spigot had been opened on the $700 billion fund created by Congress Oct. 3 to rescue the U.S. financial system. Treasury issued a report showing checks had been disbursed for $125 billion in payments to nine major banks, including Bank of America, Citigroup, JPMorgan Chase, Goldman Sachs and Morgan Stanley. The goal is to bolster their balance sheets so they will resume more normal lending.

And the administration was nearing an agreement on a plan to help around 3 million homeowners avoid foreclosure, according to sources who had been briefed on the matter. The program would be the most aggressive effort yet to limit damages from the severe housing slump…

Isn’t it amazing to see the Associated Press finally admit that we are not in a recession, in an article that once again contends that we really are:

The classic definition of a recession is two consecutive quarters of negative GDP. Many analysts believe the GDP will decline in the current October-December period by an even larger amount and they are forecasting a negative GDP figure in the first three months of next year.

Of course they remain ever-hopeful:

The National Burea of Economic Research, which is the official arbiter of recessions in this country, has not said when it will make its determination of whether the country has entered a recession.

And note this paragraph:

The Commerce Department reported that the gross domestic product, the broadest measure of economic health, fell at an annual rate of 0.3 percent in the July-September period, a significant slowdown after growth of 2.8 percent in the prior quarter.

The AP somehow neglects to mention that this is far better than what they and other economic experts had been predicting. (They had promises a decline of at least three times that size.)

And how long will it be before we are told that even this number has been revised up? (Somehow the first reported numbers are always worse news than they turn out to be.)

Also note that we finally hear that last quarter wasn’t so bad after all, despite the AP and the rest of our one party media claiming that we were in recession even then.

Similarly:

The number of laid-off workers filing new claims totaled 479,000, the same as the previous week, disappointing analysts who had expected a small drop.

The AP can’t admit the good news that unemployment has not gone up. Instead, they have to couch it by claiming analysts had predicted a drop. (Which, of course, is a blatant lie.)

More generally, isn’t it strange to see the media decrying the government throwing money at this problem?

Isn’t that their usual solution to every other problem? But here, where it actually does work, they are deeply incensed.

This article was posted by Steve on Thursday, October 30th, 2008. Comments are currently closed.

4 Responses to “AP: We Are/Aren’t Finally In A Recession”

  1. 1sttofight says:

    We will be in the worst depression in galactic history, with 8 gazillion homeless people in the US if McCain/Palin win.
    On the other hand if The One is able to fool enough people to win, we will be basking in the Dawn of The Golden Age of Man.

  2. Colonel1961 says:

    Prediction: Day one after the Onion, er, uh, the One is sworn in (God save us) the seas will part, the birds will sing and the economic news will magically revert back to the fourth or fifth page of the newspaper…

  3. sheehanjihad says:

    rest assured that when, er, if Hussein wins, this economic mess will magically go away. They have successfully socialized the banking system, the education system, and our own government. They wont be content until our entire country is sinking in the cesspool of their decisions, and that will be fast on the heels of the crowning of the King.

  4. imnewatthis says:

    Watching Obama’s infomercial, you’d think we were in the middle of the Great Depression, whereas in the lives of everyone I know, it seems to be business as usual. The MSM is the same way. You’d think it was impossible to get a job, everyone’s in a bread line, etc.


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