The current account deficit is a ticking time bomb. We don't know when it s going to explode, but it cannot continue the way the White House describes. |
The drop in the unemployment rate to 4.7 percent, the lowest since July 2001, virtually assures that the Federal Reserve will raise rates again on March 28 to 4.75 percent and at the May 10th meeting to 5 percent. |
The economy is generating plenty of jobs -- that's good news. |
The higher interest rates go, the more lucrative bonds and T-Bills are. When 30-year bond yields get over 7 percent, with absolutely no risk, money gets shifted out of the techs and put elsewhere. |
The latest batch of economic news does not paint a very encouraging picture on the sustainability of consumer spending. |
The sharp pullback in economic growth during the final three months of 2005 shows the law of gravity has not been repealed. When consumers are burdened with heavy debt loads, rising interest rates, higher energy costs, no personal savings and household income growth that falls below inflation, something had to give. This retrenchment in spending was generally foreseen, though economists weren't sure on the timing and magnitude. |
The stress on household finances in coming weeks will be the greatest since the last recession in 2001, |
The tech industry is creating its own shakeout, |
There are signs that indicate economic strength might strain the economy, which would cause inflation. |
There is a real sense of foreboding about the economy now that Katrina has struck with full force. This storm will be the most devastating ever for the U.S. oil and refining industries. |
This is the latest sign that the economy is slowing down, and because these are labor numbers, they're going to have particular weight with the Fed. This is the kind of news that could take some of the uncertainty out of the markets and get stocks going up again. |
We have unmistakable signs that households are becoming more cautious about spending. |
When consumers are burdened with heavy debt loads, rising interest rates, higher energy costs, no personal savings and household income growth that falls below inflation, something had to give. |
While the DOJ maintains long-standing, black-and-white parameters to seek out monopolies, the FCC tends to undertake a far more subjective and changeable analysis. |
With borrowing costs on the rise and the wealth effect from real estate assets diminishing, something has to give. |