Saturday, January 30, 2010

Growth pulling economy out of recession?

The U.S. economy grew by a better-than-expected 5.7 percent annual rate during the final quarter of 2009, the Commerce Department reported Friday. However, economists think that pace is unlikely to continue.

The surprisingly strong number followed a 2.2 percent growth rate in the third quarter of 2009.

The combined half-year record strongly suggests that the deep U.S. recession is over, though the economy remains hobbled.

"The worst is now officially behind," read the headline of a research report Friday by Bank of America Merrill Lynch Global Research.
http://www.miamiherald.com/business/story/1453995.html

It's costing trillions in deficits to sustain a jobless recovery that is not generating sufficient jobs or economic activity to re-pay the deficits.

What happens when we run out of lenders willing to fund our deficits?

With real unemployment in the high teens, I don't want to hear anyone in this administration brag that "the worst is behind us".

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