All Indicators Pointing Down
This week's economic news didn't leave a lot of reason to start the weekend smiling. Whether it be the revised fourth-quarter U.S. Gross Domestic Product (GDP) figures, a falling consumer confidence report, plummeting home prices, drastic Federal Reserve intervention in the financial markets, or a volatile stock market, the American economy seems to be living out an old saying: things get worse before they get better. Examining this past week in the context of the new GDP numbers is helpful in understanding exactly where the economy stands today -- and how much it needs to improve. The revised fourth-quarter numbers were as expected, confirming what many economists have been predicting -- that growth in the last three months 2007 was virtually unchanged from the previous quarter, sitting near zero at 0.6 percent. The numbers are even more disappointing when looking at the past 12 months; growth slowed to 2.2 percent over the entire year, the slowest pace since 2002. If one were to argue six months ago that the American economy was not faltering, it may be possible to scrape together the numbers to prove the point. But yesterday's announcement shows that American economic future may have storm clouds ahead. This is just the opening salvo to slower economic growth.
RIPPLES THROUGH THE ECONOMY: A further breakdown of yesterday's report reveals the magnitude of the crisis. Real personal spending rose just 1.9 percent from a three percent average over the last year, showing that consumer confidencehas reached rock-bottom lows. CNN reported, "The [consumer confidence] indicator, which is based on a survey of 5,000|
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"On March 29, 2008 at 8 p.m., join millions of people around the world in making a statement about climate change by turning off your lights for Earth Hour."
ALABAMA:
Former governor Don Siegelman ordered released from prison.
CALIFORNIA:
State "Air Resources Board voted Thursday to slash by 70% the number of
emission-free vehicles that carmakers must sell in the state in coming
years."
ENVIRONMENT:
"The American West is heating up faster than any other region of the
United States, and more than the Earth as a whole."
THINK
PROGRESS: President Bush: Iraq's resurging violence is "a very
positive moment."
WONK
ROOM: Conservative columnist Robert Novak, the Prince of Populism.
BRAD
WARTHEN'S BLOG: Sen. Lindsey Graham (R-SC) says Sen. Joe Lieberman
(I-CT) "is a national treasure."
TV
DECODER: Al Jazeera's American anchor quits, citing too much
editorial control from the station's headquarters in Qatar.
"[T]he surge is working. ... [N]ormalcy is returning back to
Iraq."
-- President Bush, 3/27/08
VERSUS
"The State Department has instructed all personnel at the U.S. Embassy
in Baghdad not to leave reinforced structures due to incoming insurgent
rocket fire that has killed two American government workers this week."
-- AP, 3/28/08







