Saturday, November 01, 2003


THEIR SPIN, YOUR MONEY: "U.S. Economy: GDP Grows at Fastest Rate Since 1984"

They've even got Bloomberg spinning their recovery yarn!!

Hope you're not putting your money where their mouth is.

Here's an unspun, realistic perspective on this "growth":

"This economic recovery is the most expensive on record and has yet to produce material results for corporate investment, or employment. So far, the recovery has cost 13 interest rate cuts, 3 tax cuts, and, a war! In addition, it has created a real estate bubble (the likes of which the world has never seen before), a reflation of the stock market bubble, and a policy designed to have average citizens support both bubbles by taking unprecedented personal risks when investing. Indeed, never before has a central bank cut rates so many times, nor has a federal government spent so much money resulting in such a small economic improvement, other than boosting consumer spending.

Third quarter economic growth of 7.2% is impressive, yet this growth is a sign of gluttony fed by money borrowed by the US Treasury and the mortgage market. The spending is yet to be backed up by any growth in consumer wages and salaries. ... All of this "Stimu-Less" proves only that a few months of growth can be purchased if the authorities are willing to pay any price."

Read the rest of this article by Richard Benson of SFGroup

[Note: can't link directly to article: click Articles, then Economic Recovery or Stimu-Less?]

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