Associated Press – Economy’s rebound not as strong as first thought – Growth Overstated By 25%

By JEANNINE AVERSA, AP Economics Writer Jeannine Aversa, Ap Economics Writer 10 mins ago

WASHINGTON – The economy is growing modestly, with consumers too wary about spending to invigorate the recovery.

That picture emerged Tuesday from reports on the nation’s economy and the confidence of consumers, who power 70 percent of it. The economy grew at a 2.8 percent rate last quarter — less than originally estimated. And forecasts for the current quarter are for similarly slight growth before a drop-off next year.

The main reasons are that consumers remain reluctant to spend, commercial construction has slipped and imports are dampening U.S. growth.

The Commerce Department’s new reading on gross domestic product was weaker than the 3.5 percent growth rate for the July-September period estimated just a month ago. The GDP, which measures the value of all goods and services produced in the United States, also was a tad weaker than the 2.9 percent growth rate that economists surveyed by Thomson Reuters had expected.

At the same time, the Conference Board’s latest survey of consumer confidence found that as retailers enter the crucial holiday season, shoppers remain gloomy. Unemployment and tight credit have sapped consumers’ willingness and ability to spend freely.

Also Tuesday, the Standard & Poor’s/Case-Shiller home price index of 20 major cities suggested that the housing market’s recovery is continuing, if only gradually. Home prices rose slightly in September. Compared with a year earlier, though, they remain down 9.4 percent.

http://news.yahoo.com/s/ap/20091124/ap_on_bi_go_ec_fi/us_economy

Just like the bogus “jobs created or saved” numbers – the Obama Administration continues to politicize the numbers …. GDP growth was overstated by 35% and home sales – which are repeatedly touted as being “up” are in fact down between 9% and 10% from last year – one of the worst years on record ………

I Wasn’t Kidding – NINJA & LIAR Loans Are Still Around – Former Treasury Sec’y O’Neill says “NO MORE SUBPRIME MORTGAGES!”

Former Treasury Sec’y O’Neill says “NO MORE SUBPRIME MORTGAGES!”

By Liz Claman

Can’t put down 20% for a house? TOO BAD, you’re on your own now. Former Treasury Secretary Paul O’Neill joined me on “Countdown to the Closing Bell” exclusively today to talk about a myriad of issues. He has some controversial thoughts on tax hikes for BOTH the rich AND poor, whether the U.S. Auto Industry should be bailed out, and why no one should be issued a subprime mortgage loan anymore.

O’Neill says we all need ‘tough love’ to get us out of this mess.  Please watch all three clips.  Whether you agree with him, here are some fascinating ideas from Paul O’Neill.

SEE THE VIDEOS HERE: http://liz.blogs.foxbusiness.com/2008/11/11/former-treasury-secy-oneill-says-no-more-subprime-mortgages/

Jobless claims jump unexpectedly to 7-year high

WASHINGTON (AP) — The number of newly laid-off individuals seeking unemployment benefits has jumped to a level not seen since just after the Sept. 11, 2001, terrorist attacks. [What companies were “bailed out” in 2001? None? Is that so.]

The Labor Department on Thursday reported that jobless claims last week increased by 32,000 to a seasonally adjusted 516,000. That nearly matched the 517,000 claims reported seven years ago, and is only the second time since 1992 that claims have topped 500,000. [1992, wasn’t that in the middle of Clinton’s first term? Isn’t Obama working with Clinton’s Economic team].

The increase puts jobless claims at levels similar to the recession of the early 1990s. The four-week average of claims, which smooths out fluctuations, increased to 491,000, the highest in more than 17 years. [Oh, they mean the Clinton Recession! Why don’t they call it that. The Clinton Recession. Things have not been this bad since the Clinton Recession – Then we would know what they mean. By the way what Industry did Clinton Bailout? None! Are you sure? Here I thought it was all “good times” during the Clinton years – that Obama would bring back the Clinton years. Looks like the Democratic Congress beat him to it!].

Jobless rate bolts to high not seen since Clinton Administration – Unemployment 14 year high of 6.5 percent

UPDATED HERE: https://mcauleysworld.wordpress.com/2009/09/05/unemployment-and-1st-time-unemployment-claims-are-on-the-rise/

Jobless rate bolts to 14-year high of 6.5 percent

By JEANNINE AVERSA, AP Economics Writer

WASHINGTON – The nation’s unemployment rate bolted to a 14-year high of 6.5 percent in October as another 240,000 jobs were cut, far worse than economists expected and stark proof the economy is deteriorating at an alarmingly rapid pace.

The new snapshot, released Friday by the Labor Department, showed the crucial jobs market quickly eroding. The jobless rate zoomed to 6.5 percent in October from 6.1 percent in September.

http://news.yahoo.com/s/ap/20081107/ap_on_bi_go_ec_fi/economy

Let me see, 14 years ago. That would be 1994. The middle of Clinton’s first term. A Democratic Congress then and a Democratic Congress now – getting more liberal by the minute.

I thought the Clinton days were the days of “Milk & Honey” – things don’t get better than that.

Well, that is true compared with the Carter Administration days – where we seem to be headed.

The current (2008) “Prime Interest Rate”  – 4%                 http://www.bankrate.com/brm/ratewatch/leading-rates.asp

Under Jimmy Carter Interest rates topped out at 21.5% in Decemeber 1980, 5 times higher than today.  http://en.wikipedia.org/wiki/Jimmy_Carter

2008 Unemployment Rate: (4.9% January 2008 – 6.5 % October 2008) 2008 Average – 5.52% http://data.bls.gov/PDQ/servlet/SurveyOutputServletdata_tool=latest_numbers&series_id=LNS14000000

Under Jimmy Carter unemployment topped out at a whopping, double digit  – 11.3% – in some states. Twice as high as the 2008 National Average.

http://www.deptofnumbers.com/unemployment/michigan/

The 2008 average inflation rate 4.3%. http://inflationdata.com/inflation/inflation_rate/CurrentInflation.asp

Under Jimmy Carter – 14% inflation. 

http://economics.about.com/od/useconomichistory/a/stagflation.htm

One last comparison, “The media discovered and promoted Carter. As Lawrence Shoup noted in his 1980 book The Carter Presidency and Beyond:

“What Carter had that his opponents did not was the acceptance and support of elite sectors of the mass communications media. It was their favorable coverage of Carter and his campaign that gave him an edge, propelling him rocket-like to the top of the opinion polls. This helped Carter win key primary election victories, enabling him to rise from an obscure public figure to President-elect in the short space of 9 months.”  http://en.wikipedia.org/wiki/Jimmy_Carter

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