Economy Contracted at 5.7% Rate in First Quarter

[cwo_ghwebb]

The U.S. economy shrank at a 5.7 percent annual pace in the first quarter, capping its worst six- month performance in five decades and reflecting declines in housing, inventories and business investment. The contraction in gross domestic product was smaller than the government estimated last month, revised figures from the Commerce Department showed today in Washington. The drop was larger than economists had forecast, and followed a 6.3 percent tumble in the last three months of 2008.

The slowdown is forecast to ease this quarter, reflecting smaller declines in stockpiles of unsold goods and in construction, which may set the stage for a return to growth later this year. Still, companies are likely to continue cutting jobs as profits remain under pressure, causing consumers to limit spending and slowing any expansion.

U.S. Economy Contracted at 5.7% Rate in First Quarter (Update2) - Bloomberg.com

Even as he conceded there is still much hard work to do, President Obama was in a boastful mood Wednesday night, telling a star-studded crowd at a fundraising dinner that he "would put these first four months up against any prior administration since FDR."

/snip

But Obama said in promising to continue to work hard, "Los Angeles, you ain't seen nothing yet."

TheHill.com - Obama in L.A.: 'You ain't seen nothing yet'

Somebody is living in a bubble.

 

[Crewdawg141]

U.S. Economy Contracted at 5.7% Rate in First Quarter (Update2) - Bloomberg.com

TheHill.com - Obama in L.A.: 'You ain't seen nothing yet'

Somebody is living in a bubble.

Yup, we are already starting to come out of the recession!

 

[Larry Gude]

Let me now when the contractions get closer together so we can get pictures of what they squeeze out of us next.

 

[cwo_ghwebb]

Let me now when the contractions get closer together so we can get pictures of what they squeeze out of us next.

Once Considered Unthinkable, U.S. Sales Tax Gets Fresh Look


With budget deficits soaring and President Obama pushing a trillion-dollar-plus expansion of health coverage, some Washington policymakers are taking a fresh look at a money-making idea long considered politically taboo: a national sales tax.

washingtonpost.com - nation, world, technology and Washington area news and headlines

So much for 95% of the people getting a tax break!