Friday, July 30, 2010

STOP Calling It A 'Recovery'!

The media just can't make up its mind: Every month, "signs point to recovery" based on some hoo-haw saying so, followed by statistical indicators that prove it's simply not true, then news reports that "the recovery has slowed." For god's sake, can we just stop saying that the economy has shifted and report the facts: It still blows.

AP: "The recovery lost momentum in the spring as growth slowed to a 2.4% pace, its most sluggish showing in nearly a year and too weak to drive down unemployment. Consumers spent less, companies slowed restocking shelves and the nation's deficit dragged more on the economy in the April-to-June quarter. The Commerce Department said the recession was deeper than previously estimated."

Well, duh...

The facts, according to this report:
* Consumer spending, usually the lifeblood of economic activity, slowed in 2Q to 1.6%, down from 1.9% in 1Q—the weakest showing since the end of last year.
* Americans socked away 6.2% of their disposable income in the second quarter, the highest share in a year.
* Consumer spending at a 2.4% growth rate from April to June quarter was the weakest since a 1.6% uptick in 3Q 2009.
* And let's remember the most important: Unemployment remains locked at 9.5%. Its October surge to 10.1% in October was a 26-year high.