It's the Economy, Stupid
In spite of revisionist economic pundits, the truth is emerging. The US economy is growing at a very health pace. The last quarter's growth figures were revised up to an annualized 4.3%. This is in spite of high oil prices and hurricane Katrina.

Even the NY Times wrote this:

Gasoline is cheaper than it was before Hurricane Katrina slammed into New Orleans. Consumer confidence jumped last month and new home sales hit a record. The stock market has been rising. Even the nation's beleaguered factories appear to be headed for a happy holiday season.

By most measures, the economy appears to be doing just fine. No, scratch that, it appears to be booming.

Of course, unable to see a silver lining without a storm cloud, the Times followed with:

[B]ut [the current growth] does not mean the broad economic picture next year will be even better. Indeed, the Organization of Economic Co-operation and Development said today that the United States economy is likely to be a repeat of 2005. The O.E.C.D. projected that 2005 growth will settle at 3.6 percent, down from 4.2 percent in 2004. The O.E.C.D. also forecast 2006 growth at 3.5 percent, but other economists think that may be too optimistic.

Now investors, whose stock-buying had been fueling an end-of-year rally, fear that the latest positive figures will lead the Federal Reserve to take the punchbowl away by raising interest rates more than most analysts expected just a few weeks ago. In turn, that could further slow the housing market, dampen consumer spending and crimp corporate profits. "The two major concerns are the extent of slowdown in housing and how it can feed into growth and consumer spending," said Joshua Shapiro, chief United States economist at Maria Fiorini Ramirez Inc., a research firm in New York.

God forbid we report any straight economic good news under President Bush's watch!
- posted by Base10 @ 9:56 AM