Friday, July 31, 2009

Economy Mending?

The Money section of USA Today's Thursday print edition was headlined, Reports show economy mending. Obama sees 'beginning of the end of the recession'. I do not know what story USA Today's editors were reading when they wrote that headline. The story by Matt Krantz which followed made the following points:
1. Five federal reserve regions were reporting economies which were subdued or weak while the Minneapolis region was faltering.
2. The Federal Reserve beige book report indicated concern about the demand for office buildings, retail space, and manufacturing facilities.
3. Jim Paulsen of Wells Capital Management was quoted as saying, "There's a lot of information that supports the idea we've turned a corner, but there's still a lot of doubt.
On the same page we also learned:
4. Orders to U.s. factories for big-ticket durable goods fell in June by the most in five months, 2.5%, much larger than the .6% decline economist had expected.
5. Unemployment rates rose from May to June in 348 of 370 metropolitan areas.
6. Oil prices fell almost 6% on Wednesday alone.
7. In trading on Wednesday the Nasdaq composite index, the Standard & Poor's 500 index and the Dow Jones Industrial Average each lost 1% of their value.
The online edition also reported
8. Banks increased borrowing from the Federal Reserve's emergency lending facility over the past week.
9. Mortgage rates rose a second week in a row which does not help the housing industry.
and
10. Even the headline quote from President Obama was not quite as positive as it appeared. The more accurate rendition provided in the article from a comment made at a town hall meeting in Raleigh, North Carolina was, "We may be seeing the beginning of the end of the recession." Or not.

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