June 29, 2006

Cowbell, Now With 5.6% More tok tok tok
— Ace

First quarter growth revised up to a sizzling 5.6%.

Once again, the predictable headline:

Economy Growth Boils in 1st Quarter but Has Flashed Signs of Cooling Since Then

Of course it's cooling, morons. Only developing nations are able to sustain such high growth rates for more than a quarter or two.

And how much is it cooling? Well, down a positively chilly 2.5% to 3% rate of growth, better known as "solid growth."

Fresher barometers, however, suggest the economy is slowing.

In a separate report, the Labor Department said new claims filed for unemployment benefits last week rose by 4,000 to 313,000 -- a bit more than economists were expecting.

Analysts believe economic growth in the April-to-June quarter could turn out to be half the pace of the first quarter's. They are predicting growth in the range of 2.5 percent to 3 percent. High energy prices and a more moderate housing market will play roles in the expected slowdown.

"I think the economy is moving from a boil to a simmer," said Richard Yamarone, economist at Argus Research.

Damn, the economy will merely be "simmering" in the next few months. Let's all hang ourselves in the garage.

Posted by: Ace at 10:00 AM | Comments (20)
Post contains 213 words, total size 1 kb.

1 Ace, please insert the Cowbel Girl pic that usually accompanies news of this nature. Thanks!

* readies kleenex *

Posted by: Evil Chihuahua at June 29, 2006 10:04 AM (mAhn3)

2 Another MSM headline noted the past week:

"Housing sales down 1% as market dwindles."


Posted by: The Machine at June 29, 2006 10:08 AM (L/jMX)

3 Everywhere I look today it's toc toc toc and tic tic tic.

Posted by: Gabriel Malor at June 29, 2006 10:09 AM (xc1aK)

4 My Illegal Alien Canine friend above was correct in noting the lack of the appropriate photo to go along with this news.

Posted by: MH at June 29, 2006 10:26 AM (nlOl+)

5 Goddam simmering economy. That's it!

*looks for a rope*

Posted by: Dave in Texas at June 29, 2006 10:26 AM (Hocvw)

6 4,000 illegals probably came across and displaced Americans...

...of course some states might be dumb enough to give unemployment to illegals too.

Posted by: Purple Avenger at June 29, 2006 10:27 AM (JuWpl)

Posted by: AlexC at June 29, 2006 10:44 AM (vz7vD)

8 I like the way conservatives are trying to paint this data as a 'good thing'. Think of the unemployed for once in your life. A lot of these people don't want to work, and it is getting harder and harder to stay unemployed in such a sizzling economic boom. If this keeps up, I may have to get a job!

Damned selfish conservatives.

Posted by: Kevin at June 29, 2006 10:54 AM (++0ve)

9 Hang ourselves in the garage? Waaaay too chic.

I'm going retro and tossing myself off a tall building.

Posted by: Hoodlumman at June 29, 2006 10:56 AM (1iJzK)

10 Ever notice that "economic predictions" are always wrong? Then it's a big "news story" when they are wrong. Not really news, is it? It would be news if they turned out to be right, for once.

Posted by: robert108 at June 29, 2006 11:35 AM (OhUXH)

11 Damn it ace! I'm poor! I don't have a frickin' garage for my three cars. Where the hell am I supposed to hang myself without a garage?

Posted by: chris at June 29, 2006 12:12 PM (uwYCg)

12 Having skimmed the article, I agree it's quite negatively spun. Setting that aside, though, it's possible to see slower growth following such a good quarter as an extra helping of good news. The prospect of two quarters of growth between 5% and 6% would have further increased fears of inflation and of hikes in interest rates.

Posted by: Kralizec at June 29, 2006 01:34 PM (m5x6c)

13 5.6% is actually unhealthy growth to maintain for long, as I understand it. You run into danger of inflation when that happens. But it's sweet to see in bursts, to give people a nice shot in the arm and energize new business.

Posted by: Christopher Taylor at June 29, 2006 02:54 PM (Pwzb0)

14 Well, the increase in the Interest rate is the likely handwringing point by the Times, et al. My first mortgage was a bargain at 9.5%. I struggled for 5 years, but it got easier as it got on. What's the projected interest rate for the average mortgage today?

Posted by: Tom M at June 29, 2006 04:00 PM (ARXgj)

15 I think I noted earlier today that the average starting rate is about 6.5%-7%.

Which isn't too much worse than a Perkins student loan at 5%. And definitely better than 9.5%.

Apparently folks liked it today, since most major indices went up about 2% today despite the .25% rate hike. Makes it hard to spin everything as bad news when lots of folks make money.

Posted by: Francase at June 29, 2006 05:33 PM (Ub9B8)

16 9.5% heh... I got my student loan in 1983 and the rate was 14%. That was a huge discounted interest rate in 83. Thank you Jimmy F'in Carter. Took 4 years to dig out of the chasm he sunk America into, never again.

Posted by: Christopher Taylor at June 29, 2006 07:18 PM (Pwzb0)

17 Economy Growth Boils in 1st Quarter: Women and Minorites Hardest Hit

Posted by: SicSemperTyrannus at June 30, 2006 12:44 AM (lNB+R)

18 Simmering... like a nice red wine reduction sauce...

Posted by: Sinner at June 30, 2006 02:55 AM (QDoaV)

19 Celibrate the 4th of JULY and screw CINCO DEMAYO

Posted by: spurwing plover at July 02, 2006 02:06 PM (S97cI)

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