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Wednesday, January 30, 2008

4th Quarter Growth Slowed

Fourth quarter growth slowed to a weak .6 percent from October to December.  
 
Consumer spending was down 2 percent from 2.8 percent in previous quarter.  But the consumer spending should be more robust once the tax rebate checks are mailed out (sarcasm).  While on the topic of rebates, if they are so successful, why not give out $100,000 to everyone?  Wouldn't that make everyone happy and resolve all the housing issues?
 
The ADP jobs report came out strong showing a gain of 130,000 new jobs. 
 
Is it any coincidence that the government data comes out so weak on the day fed is going to cut rates?  Can you say future upward revision?  That would give a double bounce to the stock market and an excuse for the fed to cut rates.
 
 
 
 
 
 
 

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