Fed Issues Gloomy Economic Forecast

Housing Slump, Inflation, Unemployment Prompt Central Bank To Lower Outlook For Growth

(CBS/AP)  The Federal Reserve on Wednesday lowered its projection for economic growth this year, citing damage from the double blows of a housing slump and credit crunch. It said it also expects higher unemployment and inflation.

The updated forecasts come amid worry by Federal Reserve Chairman Ben Bernanke and his colleagues that the economy could continue to weaken, even after their aggressive interest rate cuts in January, according to minutes of those private deliberations released Wednesday.

"With no signs of stabilization in the housing sector and with financial conditions not yet stabilized, the committee agreed that downside risks to growth would remain even after this action," minutes of the Fed's Jan. 29-30 closed door meeting showed.

The Fed at that session voted to cut a key interest rate by one-half percentage point to 3 percent at that meeting. Just eight day earlier, the Fed, in an emergency session, slashed its rate by a rare three-quarters percentage point. The two rate cuts together marked the most dramatic rate reductions in a single month by the Fed in a quarter century.

Under its new economic forecast, the Fed said that it now believes the gross domestic product will grow between 1.3 percent and 2 percent this year. That's lower than a previous Fed forecast for growth, which at that time was estimated to be between 1.8 percent and 2.5 percent.

GDP is the value of all goods and services produced within the United States and is the best barometer of the country's economic fitness.

Grocer Gal Samrai didn't need today's numbers to know inflation is heating up; it's burning up his profit. The cost of stocking his shelves with food goes up one shipment to the next.

"It's unbelievable," Samrai told CBS News correspondent Bill Whitaker. "Lately we've taken really a big increase from a lot of the suppliers."

Whitaker reports that in the last two years, the cost of flour has soared 27%, eggs a whopping 50% and milk - up 26% from just a year ago.

And it's not just at the grocery store. Last month rents went up across the country, hospital costs jumped and so did clothing and gasoline. The national average for a gallon of unleaded is now $3.04 versus $2.29 a year ago.

In other economic developments:

With economic growth slowing, the Fed projected that the national jobless rate will rise to between 5.2 percent to 5.3 percent this year. That is higher than the central bank's old forecast for the rate to climb to as high as 4.9 percent. Last year, the unemployment rate averaged 4.6 percent.

With energy prices marching upward, the Fed also raised its projection for inflation. The Fed now expects inflation to be between 2.1 percent and 2.4 percent this year. That's higher than its old forecast for inflation, which was estimated to come in at around 1.8 percent to 2.1 percent.

Oil prices on Tuesday jumped to a new record - topping $100 a barrel. Consumer prices, meanwhile, rose by a bigger-than-expected 0.4 percent in January, according to new government figures released Wednesday.

But retailers across the sector have been laying off staff and closing stores as consumers cut back on discretionary spending. The International Council of Shopping Centers projects 2008 store closings could reach 5,770 stores in 2008, the largest number of closings since 2004. Retailers as a whole reported their worst January same-store sales in almost four decades. Both Sharper Image, known for its high-tech novelty gadgets, and Lillian Vernon, which sells low-cost gifts and gadgets through its catalog and Web site, have long been plagued with falling sales.

The Labor Department reported that its closely watched Consumer Price Index posted a gain of 0.4 percent last month, matching the December increase and higher than the 0.3 percent rise that analysts had expected. Food costs jumped by the largest amount in 11 months, led by big gains for vegetables, fruit, poultry and pork.

The Fed said its revised forecasts reflected a number of factors including "a further intensification of the housing market correction, tighter credit conditions ... ongoing turmoil in financial markets and higher oil prices."

University of California, Irvine economist Peter Navarro told Whitaker that the combination of slower economic growth and increasing inflation could complicate the Fed's work.

"Not only does it hit the consumer in the pocketbook, but it makes it very, very difficult for the Federal Reserve to basically stimulate the economy out of recession," Navarro said, "because all that'll do is exacerbating the inflation. It's called 'stagflation'."

The central bank is trying to keep the economy growing, while ensuring that inflation stays under control. The Fed's remedy for a weakening economy is interest rate cuts. To combat inflation, the Fed usually boosts rates.

© MMVIII, CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.

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by skyk-2009 February 20, 2008 3:14 PM PST

This has been coming for a long time. The American Consumer has been living way to long on credit cards and loans. They are trying to maintain a Standard of Living that has LONG ago been shipped to other shores. Our standard of living is dead last amoung the G-7 but that''s the good news. The bad news is it''s holding on and staying out of third world status by a hair. It''s amazing to look at where we were when Bush took office and were we stand now... absolutely AMAZING!!

Reply to this comment

by rudy654-2009 February 20, 2008 3:18 PM PST

Of course it''s a grimmer forecast. Big oil is determined to suck Americans and others dry right now (record profits from people who claim not to be price gauging), and as long as that is their intent, and as long as we remain the automobile society we are, the economic forecast has to be worse than can be imagined.

Reply to this comment

by crater7 February 20, 2008 3:19 PM PST

DUHHHHHHHHHHHHHHHHHHHHH!!!!!!!!!!!!!!!!

Reply to this comment

by easeup-2009 February 20, 2008 3:24 PM PST

"The bad news is it''''s holding on and staying out of third world status by a hair. It''''s amazing to look at where we were when Bush took office and were we stand now... absolutely AMAZING!!

Posted by skyk at 03:14 PM : Feb 20, 2008"

Staying out of 3rd world status by a hair??? BWAHAHAHAHAHA!!!!!!!!!Funny when Bush took office we had the tech bubble burst (which was a big part of Clinton''s "growth"), a recession, 9/11 and the Chinese were given the key to the city by Clinton to take all of our manufacturing jobs.

Frankly it''s amazing the economy survived the aftermath of Clinton.

Reply to this comment

by rudy654-2009 February 20, 2008 3:25 PM PST

Posted by easeup at 03:24 PM

Simply amazing your ridiculous comments.

Reply to this comment

by skyk-2009 February 20, 2008 3:26 PM PST

Of course it''''s a grimmer forecast. Big oil is determined to suck Americans and others dry right now (record profits from people who claim not to be price gauging), and as long as that is their intent, and as long as we remain the automobile society we are, the economic forecast has to be worse than can be imagined.


--------------------------------------------------------------------------------

Posted by rudy654 at 03:18 PM : Feb 20, 2008
+ report abuse

Well Bush''s War can''t be helping things to much either. When you look at the cost of the national debt, the deficit and the war. Well that much money taken out of a system already streached to the max, it''s going to be rough for sometime to come... that is assuming we elect a democrat to the white house. Electing McCain is only replacing what we have now with more of the same.

Reply to this comment

by easeup-2009 February 20, 2008 3:28 PM PST

"Simply amazing your ridiculous comments.

Posted by rudy654 at 03:25 PM : Feb 20, 2008"

Please prove ONE thing incorrect about that post. ONE.

Reply to this comment

by jwind11 February 20, 2008 3:28 PM PST

I dont have any facts, but this has to be Bush` fault... right? I mean everything is.

Reply to this comment

by skyk-2009 February 20, 2008 3:29 PM PST

Staying out of 3rd world status by a hair??? BWAHAHAHAHAHA!!!!!!!!!Funny when Bush took office we had the tech bubble burst (which was a big part of Clinton''''s "growth"), a recession, 9/11 and the Chinese were given the key to the city by Clinton to take all of our manufacturing jobs.

Frankly it''''s amazing the economy survived the aftermath of Clinton.


--------------------------------------------------------------------------------

Posted by easeup at 03:24 PM : Feb 20, 2008
+ report abuse

Maybe you were on some other planet during the 90''s? LOL Look all of us remember Clinton forcing congress under the Republican''s to shut down the Government rather than give them Tax Cuts we could NOT afford. We also, clearly remember the Bush Administration being handed an BALANCED BUDGET and a SURPLUS! Now they have mismanaged that about as badly as it can be done!! Those are just facts!!

Reply to this comment

by skyk-2009 February 20, 2008 3:31 PM PST

I dont have any facts, but this has to be Bush` fault... right? I mean everything is.



--------------------------------------------------------------------------------

Posted by jwind11 at 03:28 PM : Feb 20, 2008
+ report abuse

FACT! George W. Bush was handed a Government with a BALANCED BUDGET and a SURPLUS! This is HIS economy under HIS plan! Those are just facts every American should concider when concidering that McCain want''s to continue the same. RECORD Debt, RECORD Borrowing and Balanced Budget? What''s that?

Reply to this comment

by denn034 February 20, 2008 3:31 PM PST

What part of stimulus package don''t people understand? Besides, ups and downs economically comes with the territory.

Reply to this comment

by easeup-2009 February 20, 2008 3:32 PM PST

"Maybe you were on some other planet during the 90''''s? LOL Look all of us remember Clinton forcing congress under the Republican''''s to shut down the Government rather than give them Tax Cuts we could NOT afford. We also, clearly remember the Bush Administration being handed an BALANCED BUDGET and a SURPLUS! Now they have mismanaged that about as badly as it can be done!! Those are just facts!!

Posted by skyk at 03:29 PM : Feb 20, 2008"

Nothing to do with your original post or my reply.

Reply to this comment

by sgtrds February 20, 2008 3:34 PM PST

This is classic fallout from the disastrous trickle down economy plan, just like the one that made such a mess in the 1980''s under that moron Reagan. The idea that the economy is driven from the top down is ludacris and trying to make it happen only benefits the already wealthy. REAL growth happens from the bottom up via purchasing as the financial situation improves for the poor and middle class.

Reply to this comment

by jwind11 February 20, 2008 3:35 PM PST

FACT! George W. Bush was handed a Government with a BALANCED BUDGET and a SURPLUS! This is HIS economy under HIS plan! Those are just facts every American should concider when concidering that McCain want''''s to continue the same. RECORD Debt, RECORD Borrowing and Balanced Budget? What''''s that?


--------------------------------------------------------------------------------

Posted by skyk

concider? concider? i don''t know what that means, so not sure I want to do it. Not sure I want americans concidering either.

Reply to this comment

by jwind11 February 20, 2008 3:37 PM PST

FACT! George W. Bush was handed a Government with a BALANCED BUDGET and a SURPLUS! This is HIS economy under HIS plan! Those are just facts every American should concider when concidering that McCain want''''''''s to continue the same. RECORD Debt, RECORD Borrowing and Balanced Budget? What''''''''s that?


----------------------------------
----------------------------------------
------

Posted by skyk

concider? concider? i don''''t know what that means, so not sure I want to do it. Not sure I want americans concidering either.


--------------------------------------------------------------------------------

Posted by jwind11

ever think that, the problem is to many americans concidering? think about it. muslims hate us because of all of our concidering.

Reply to this comment

by lorinkundert February 20, 2008 3:37 PM PST

Time to move back to the gold standard if you want stability in the currency.

Reply to this comment

by jwind11 February 20, 2008 3:44 PM PST

Those are just facts every American should concider when concidering that McCain want''''s to continue the same.
---------------------------

Posted by skyk

someone tell me what concidering is, so i might be able to understand this post. Thanks.

Reply to this comment

by jwind11 February 20, 2008 3:45 PM PST

Those are just facts every American should concider when concidering that McCain want''''''''s to continue the same.
---------------------------

Posted by skyk

someone tell me what concidering is, so i might be able to understand this post. Thanks.


--------------------------------------------------------------------------------

Posted by jwind11

all i know is mccain wants us to continue concidering.

Reply to this comment

by taotxzen February 20, 2008 3:47 PM PST

(cont)

Worse than Richard Nixon in the days before he resigned in disgrace during Watergate, worse than Jimmy Carter during the Iran hostage crisis, much worse than Bill Clinton when he was impeached. Just as Roger Bannister raced through what once seemed the unreachable 4-minute mile, Bush has burst through a barrier once also thought impossible, below the 20-percent mark.

Check this out:
George W. Bush''s overall job approval rating has dropped to a new low in American Research Group polling as 78% of Americans say that the national economy is getting worse according to the latest survey from the American Research Group.

Among all Americans, 19% approve of the way Bush is handling his job as president and 77% disapprove.

When it comes to Bush''s handling of the economy, 14% approve and 79% disapprove.

Among Americans registered to vote, 18% approve of the way Bush is handling his job as president and 78% disapprove.

McCain is Bush 2.0

Reply to this comment

by taotxzen February 20, 2008 3:48 PM PST

Bush scores lowest presidential approval rating EVER!

The 2008 presidential race must be an incredibly welcome development for President Bush and his White House. That''s because the American body politic can only really focus on one thing at a time, and so there''s little time for anything else aside from the madcap antics of of Gilligan, the Skipper, the Millionaire and his wife, the Movie Star, the Professor and Mary Ann...and the rest. Some liberal blogs and right-wing talk radio are lined up in circular firing squads, and the op-ed columnists have trained their fire on Hillary''s lonely teardrops or Barack''s Church of the Poison Mind.

While no one was looking, the economy nosedived, gas prices have soared, the war in Iraq is as unpopular as ever and Osama bin Laden is still on the loose. And so while none of us were paying attention, our 43rd president just hit a major milestone.

George W. Bush is now the most unpopular president in recorded American history.

(cont)

Reply to this comment

by shanev137 February 20, 2008 3:48 PM PST

Trickled on economic, at it again.

Is anyone on here old enough to remember the economy back late 70''s and early 80''s?

Reply to this comment

by jwind11 February 20, 2008 3:49 PM PST

Worse than Richard Nixon in the days before he resigned in disgrace during Watergate, worse than Jimmy Carter during the Iran hostage crisis, much worse than Bill Clinton when he was impeached. Just as Roger Bannister raced through what once seemed the unreachable 4-minute mile, Bush has burst through a barrier once also thought impossible, below the 20-percent mark.

Check this out:
George W. Bush''''s overall job approval rating has dropped to a new low in American Research Group polling as 78% of Americans say that the national economy is getting worse according to the latest survey from the American Research Group.

Among all Americans, 19% approve of the way Bush is handling his job as president and 77% disapprove.

When it comes to Bush''''s handling of the economy, 14% approve and 79% disapprove.

Among Americans registered to vote, 18% approve of the way Bush is handling his job as president and 78% disapprove.

McCain is Bush 2.0




--------------------------------------------------------------------------------

Posted by taotxzen

yea, but how does he feel about concidering?

Reply to this comment

by taotxzen February 20, 2008 3:51 PM PST

Poor spellers are welcoem on this sight!

Reply to this comment

by jon_mccain February 20, 2008 3:55 PM PST

ever think that, the problem is to many americans concidering? think about it. muslims hate us because of all of our concidering.

Posted by jwind11

Hey genius, you might want to "concider" that the proper usage is "too".

Reply to this comment

by easeup-2009 February 20, 2008 3:55 PM PST

"Poor spellers are welcoem on this sight!

Posted by taotxzen at 03:51 PM : Feb 20, 2008"

AWSOME!!!!!!

Reply to this comment

by ioweign February 20, 2008 4:00 PM PST

concider? concider? i don''''t know what that means, so not sure I want to do it. Not sure I want americans concidering either.

Posted by jwind11 at 03:35 PM : Feb 20, 2008

That is how Bush invaded Iraq - didn''t want Americans to consider either...

Reply to this comment

by sgtrds February 20, 2008 4:03 PM PST

"Poor spellers are welcoem on this sight!

Posted by taotxzen at 03:51 PM : Feb 20, 2008"

AWSOME!!!!!!

Posted by easeup at 03:55 PM : Feb 20, 2008

Amon!

Reply to this comment

by excoachken February 20, 2008 4:04 PM PST

It is amazing how neocons want to re-write history to bash Carter and prise the empty headed Reagan. If Carter was not an honorable man, he could have easily won a second term by making the deal with Iran that Reagan did. As a result of his ethics, Reagan looked like a hero in the rehearsed release on hostages which was all made possible by shipping weapons and airplane parts to Iran, which were later used against our own forces. It is impossible to say how many G.I.s died to elect "the second rate Actor" President?

Reply to this comment

by mudrose-2009 February 20, 2008 4:05 PM PST

Now you can all justify your class warfare jargon. Be careful what you wish for because....

Reply to this comment

by jwind11 February 20, 2008 4:06 PM PST

Which is more complicated? spelling? or the workings of the American economy?

My opinion is the economy is way more complicated than spelling is (especially with dictionary, spellcheck etc.) . My point being, you can''t spell, you probably aren''t qualified to give "facts" about economy.

Reply to this comment

by mudrose-2009 February 20, 2008 4:09 PM PST

well it looks like the Bush economy bandaids are not going to forestall the bad news before he leaves office. which also means John McCain and whatever other loser he chooses as his vp running mate can kiss their assses goodby.
The republicon borrow and spend policy....translated....the biggest theft of your tax money in history has us out on a breaking chinese limb.
rest assured, those hypocritical bastions of personal responsibility will cast all blame on the next Dem pres
Posted by ainttaken

Well, well, I suppose George Bush extended all those loans to prospective house buyers who took Arms without thinking twice. Why if Big Nanny Government was in charge, they would have given you a hut, maybe some crawl space for you to rest your ******* heads. It''s the American electorate that created the housing problem and the credit crunch. Put the blame on yourselves for lack of restraint. Government doesn''t run the lending industry.

Reply to this comment

by easeup-2009 February 20, 2008 4:10 PM PST

"It is amazing how neocons want to re-write history to bash Carter and prise the empty headed Reagan. If Carter was not an honorable man, he could have easily won a second term by making the deal with Iran that Reagan did. As a result of his ethics, Reagan looked like a hero in the rehearsed release on hostages which was all made possible by shipping weapons and airplane parts to Iran, which were later used against our own forces. It is impossible to say how many G.I.s died to elect "the second rate Actor" President?

Posted by exCoachKen at 04:04 PM : Feb 20, 2008"

I think Carter''s lack of leadership & decisiveness emboldened the Mullahs. If he would have dropped the hammer HARD on them right after they took the hostages I would bet we wouldn''t be talking about 9/11, Iraq, etc.

Take off your partisan hat for a minute & read this:

http://www.iranian.com/Opinion/2004/September/War/

Reply to this comment

by matter77 February 20, 2008 4:12 PM PST

Like Karlgaard says, most business journalists are failed sports writers and this mindless garbage from AP is more evidence of the same. AP writers aren''t particulary bright, they''re not particularly good writers, and they aren''t friendly to business. They''re idiot scaremongerers and if you''re dumb enough to sit there and hold your mouth open like a baby bird, they''ll be glad to spoon more of the same right down your throat.

Reply to this comment

by ioweign February 20, 2008 4:14 PM PST

Well, well, I suppose George Bush extended all those loans to prospective house buyers who took Arms without thinking twice. Why if Big Nanny Government was in charge, they would have given you a hut, maybe some crawl space for you to rest your ******* heads. It''s the American electorate that created the housing problem and the credit crunch. Put the blame on yourselves for lack of restraint. Government doesn''t run the lending industry.

Posted by mudrose at 04:09 PM : Feb 20, 2008

Yea - just like the S & L Scandal back under whats his name. It is called "No Oversight"....


It''s the good girls who keep diaries; the bad girls never have the time.
Tallulah Bankhead

Reply to this comment

by random_radar February 20, 2008 4:15 PM PST

The Fed raises the interest rates to fight inflation and lowers interest rates to avoid depression.

There is no limit to how high the interest rates could be raised, so the Fed can always stop inflation theoretically.

But there is an obvious limit to how low interest rates can go--zero. The Fed cannot stop a depression, and a depression is what they apparently fear.

The Fed is getting close to running out of options, and then there will be nothing to stop the economic collapse. Its so exciting to watch the end!

Reply to this comment

by jwind11 February 20, 2008 4:16 PM PST

jwind11
feel better about yourself now? an old muslim proverb.
an increase in arrogance brings about a decrease in wisdom.


--------------------------------------------------------------------------------

Posted by ainttaken

equate skyk being a bad speller with arrogance please

Reply to this comment

by mudrose-2009 February 20, 2008 4:19 PM PST

Yea - just like the S & L Scandal back under whats his name. It is called "No Oversight"....


It''''s the good girls who keep diaries; the bad girls never have the time.
Tallulah Bankhead
Posted by IOWEIGN

Sarbanes/Oxley Tallulah.

Reply to this comment

by excoachken February 20, 2008 4:19 PM PST

To easeup: If a person wants to know why 9/11 occurred they do not have to research ancient history, just read bin Laden''s manifesto, published in the mid 90''s. He lays out the case, including our coddling of Israel while ignoring the plight of the Palestinians. carter was decisive and his initiatives had the world closer to peace in that part of the world than it has ever been since. Reagan introduced the "win regardless of impact" type of Rovian political machinery that puts Party above national interests.

Reply to this comment

by rudy654-2009 February 20, 2008 4:22 PM PST

I think Carter''''s lack of leadership & decisiveness emboldened the Mullahs. If he would have dropped the hammer HARD on them right after they took the hostages I would bet we wouldn''''t be talking about 9/11, Iraq, etc.
Posted by easeup at 04:10 PM

Now it''s Carter''s fault. Iran is responsible for 9/11 and Saddam Hussein. It just keeps getting better.

Reply to this comment

by jwind11 February 20, 2008 4:22 PM PST

Which is more complicated? spelling? or the workings of the American economy?

My opinion is the economy is way more complicated than spelling is (especially with dictionary, spellcheck etc.) . My point being, you can''''t spell, you probably aren''''t qualified to give "facts" about economy.


--------------------------------------------------------------------------------

Posted by jwind11

Leads me to believe that skyks financial/economic problems are from lack of education, not from Bush.

Reply to this comment

by easeup-2009 February 20, 2008 4:25 PM PST

"Now it''''s Carter''''s fault. Iran is responsible for 9/11 and Saddam Hussein. It just keeps getting better.

Posted by rudy654 at 04:22 PM : Feb 20, 2008"

Muslim extremists, not Iran, Professor.

You aren''t that bright, are you?

Reply to this comment

by rudy654-2009 February 20, 2008 4:26 PM PST

Posted by easeup at 04:25 PM

No, I guess I am not as bright as you are, what with your ability to tie 9/11 in with Carter and Saddam Hussein. My hat is off to you and your glorious brain.

Reply to this comment

by jwind11 February 20, 2008 4:26 PM PST

"Now it''''''''s Carter''''''''s fault. Iran is responsible for 9/11 and Saddam Hussein. It just keeps getting better.

Posted by rudy654 at 04:22 PM : Feb 20, 2008"

Muslim extremists, not Iran, Professor.

You aren''''t that bright, are you?


--------------------------------------------------------------------------------

Posted by easeup

no he isn''t , he spent all his school days concidering instead of studying.

Reply to this comment

by ioweign February 20, 2008 4:27 PM PST

Muslim extremists, not Iran, Professor.

You aren''''t that bright, are you?

Posted by easeup at 04:25 PM : Feb 20, 2008


Operation AJAX - the US picks another ''winner''...

Reply to this comment

by rudy654-2009 February 20, 2008 4:29 PM PST

Posted by jwind11 at 04:26 PM

And I am a still consideran! But you Jethro, ought to start your deciferin.

Reply to this comment

by easeup-2009 February 20, 2008 4:29 PM PST

coachken,

I actually read somewhere that the real reason OBL was bent towards the West was that Kuwait & the Saudi''s came to the U.S. for help when Saddam invaded--NOT OBL. If you recall, the Taliban was the deciding factor & kicking the Soviets out of Afghanistan. OBL got bitter because he wanted to be the hero again but wasn''t asked.

Reply to this comment

by antoniof123 February 20, 2008 4:30 PM PST

Fed Issues Gloomy Economic Forecast - Didn''t the Administration and the Fed say the opposite just a few weeks ago.

Well, if I were George or anyone else in the administration I would start saying the opposite of everything I believe because they have been wrong on everything so far.

Reply to this comment

by jwind11 February 20, 2008 4:31 PM PST

I found it!! The meaning of concidering...

"concidering" or "to concider" -- To blame all your own personal issues on current president in order to make yourself feel better. used in a sentence "skyk spent all afternoon on cbsnews.com concidering."

Reply to this comment

by watcher269-2009 February 20, 2008 4:33 PM PST

Ahh, the truth from a failed administration propped up from an illegal war. If it was not for 9/11 this country would have just started recovering from a recession/depression that always happens during a Republican administration. If not for WAR - republicans would NEVER sustain an economy!

Reply to this comment

by easeup-2009 February 20, 2008 4:42 PM PST

"Ahh, the truth from a failed administration propped up from an illegal war. If it was not for 9/11 this country would have just started recovering from a recession/depression that always happens during a Republican administration. If not for WAR - republicans would NEVER sustain an economy!


Posted by watcher269 at 04:33 PM : Feb 20, 2008"

uhhh....there WAS a recession when Bush took office. Hence the low interest rates, the housing boom & the subsequent housing slump. This was never a "war economy" like WW11. The economy grew on the record housing market & now, because of stupid borrowers and greedy lenders, there''s going to be a correction.

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[skyk-2009]

This has been coming for a long time. The American Consumer has been living way to long on credit cards and loans. They are trying to maintain a Standard of Living that has LONG ago been shipped to other shores. Our standard of living is dead last amoung the G-7 but that''s the good news. The bad news is it''s holding on and staying out of third world status by a hair. It''s amazing to look at where we were when Bush took office and were we stand now... absolutely AMAZING!!

[rudy654-2009]

Of course it''s a grimmer forecast. Big oil is determined to suck Americans and others dry right now (record profits from people who claim not to be price gauging), and as long as that is their intent, and as long as we remain the automobile society we are, the economic forecast has to be worse than can be imagined.

[crater7]

DUHHHHHHHHHHHHHHHHHHHHH!!!!!!!!!!!!!!!!

[easeup-2009]

"The bad news is it''''s holding on and staying out of third world status by a hair. It''''s amazing to look at where we were when Bush took office and were we stand now... absolutely AMAZING!!

Posted by skyk at 03:14 PM : Feb 20, 2008"

Staying out of 3rd world status by a hair??? BWAHAHAHAHAHA!!!!!!!!!Funny when Bush took office we had the tech bubble burst (which was a big part of Clinton''s "growth"), a recession, 9/11 and the Chinese were given the key to the city by Clinton to take all of our manufacturing jobs.

Frankly it''s amazing the economy survived the aftermath of Clinton.

[rudy654-2009]

Posted by easeup at 03:24 PM

Simply amazing your ridiculous comments.

[skyk-2009]

Of course it''''s a grimmer forecast. Big oil is determined to suck Americans and others dry right now (record profits from people who claim not to be price gauging), and as long as that is their intent, and as long as we remain the automobile society we are, the economic forecast has to be worse than can be imagined.


--------------------------------------------------------------------------------

Posted by rudy654 at 03:18 PM : Feb 20, 2008
+ report abuse

Well Bush''s War can''t be helping things to much either. When you look at the cost of the national debt, the deficit and the war. Well that much money taken out of a system already streached to the max, it''s going to be rough for sometime to come... that is assuming we elect a democrat to the white house. Electing McCain is only replacing what we have now with more of the same.

[easeup-2009]

"Simply amazing your ridiculous comments.

Posted by rudy654 at 03:25 PM : Feb 20, 2008"

Please prove ONE thing incorrect about that post. ONE.

[jwind11]

I dont have any facts, but this has to be Bush` fault... right? I mean everything is.

[skyk-2009]

Staying out of 3rd world status by a hair??? BWAHAHAHAHAHA!!!!!!!!!Funny when Bush took office we had the tech bubble burst (which was a big part of Clinton''''s "growth"), a recession, 9/11 and the Chinese were given the key to the city by Clinton to take all of our manufacturing jobs.

Frankly it''''s amazing the economy survived the aftermath of Clinton.


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Posted by easeup at 03:24 PM : Feb 20, 2008
+ report abuse

Maybe you were on some other planet during the 90''s? LOL Look all of us remember Clinton forcing congress under the Republican''s to shut down the Government rather than give them Tax Cuts we could NOT afford. We also, clearly remember the Bush Administration being handed an BALANCED BUDGET and a SURPLUS! Now they have mismanaged that about as badly as it can be done!! Those are just facts!!

[skyk-2009]

I dont have any facts, but this has to be Bush` fault... right? I mean everything is.



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Posted by jwind11 at 03:28 PM : Feb 20, 2008
+ report abuse

FACT! George W. Bush was handed a Government with a BALANCED BUDGET and a SURPLUS! This is HIS economy under HIS plan! Those are just facts every American should concider when concidering that McCain want''s to continue the same. RECORD Debt, RECORD Borrowing and Balanced Budget? What''s that?

[denn034]

What part of stimulus package don''t people understand? Besides, ups and downs economically comes with the territory.

[easeup-2009]

"Maybe you were on some other planet during the 90''''s? LOL Look all of us remember Clinton forcing congress under the Republican''''s to shut down the Government rather than give them Tax Cuts we could NOT afford. We also, clearly remember the Bush Administration being handed an BALANCED BUDGET and a SURPLUS! Now they have mismanaged that about as badly as it can be done!! Those are just facts!!

Posted by skyk at 03:29 PM : Feb 20, 2008"

Nothing to do with your original post or my reply.

[sgtrds]

This is classic fallout from the disastrous trickle down economy plan, just like the one that made such a mess in the 1980''s under that moron Reagan. The idea that the economy is driven from the top down is ludacris and trying to make it happen only benefits the already wealthy. REAL growth happens from the bottom up via purchasing as the financial situation improves for the poor and middle class.

[jwind11]

FACT! George W. Bush was handed a Government with a BALANCED BUDGET and a SURPLUS! This is HIS economy under HIS plan! Those are just facts every American should concider when concidering that McCain want''''s to continue the same. RECORD Debt, RECORD Borrowing and Balanced Budget? What''''s that?


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Posted by skyk

concider? concider? i don''t know what that means, so not sure I want to do it. Not sure I want americans concidering either.

[jwind11]

FACT! George W. Bush was handed a Government with a BALANCED BUDGET and a SURPLUS! This is HIS economy under HIS plan! Those are just facts every American should concider when concidering that McCain want''''''''s to continue the same. RECORD Debt, RECORD Borrowing and Balanced Budget? What''''''''s that?


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Posted by skyk

concider? concider? i don''''t know what that means, so not sure I want to do it. Not sure I want americans concidering either.


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Posted by jwind11

ever think that, the problem is to many americans concidering? think about it. muslims hate us because of all of our concidering.

[lorinkundert]

Time to move back to the gold standard if you want stability in the currency.

[jwind11]

Those are just facts every American should concider when concidering that McCain want''''s to continue the same.
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Posted by skyk

someone tell me what concidering is, so i might be able to understand this post. Thanks.

[jwind11]

Those are just facts every American should concider when concidering that McCain want''''''''s to continue the same.
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Posted by skyk

someone tell me what concidering is, so i might be able to understand this post. Thanks.


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Posted by jwind11

all i know is mccain wants us to continue concidering.

[taotxzen]

(cont)

Worse than Richard Nixon in the days before he resigned in disgrace during Watergate, worse than Jimmy Carter during the Iran hostage crisis, much worse than Bill Clinton when he was impeached. Just as Roger Bannister raced through what once seemed the unreachable 4-minute mile, Bush has burst through a barrier once also thought impossible, below the 20-percent mark.

Check this out:
George W. Bush''s overall job approval rating has dropped to a new low in American Research Group polling as 78% of Americans say that the national economy is getting worse according to the latest survey from the American Research Group.

Among all Americans, 19% approve of the way Bush is handling his job as president and 77% disapprove.

When it comes to Bush''s handling of the economy, 14% approve and 79% disapprove.

Among Americans registered to vote, 18% approve of the way Bush is handling his job as president and 78% disapprove.

McCain is Bush 2.0

[taotxzen]

Bush scores lowest presidential approval rating EVER!

The 2008 presidential race must be an incredibly welcome development for President Bush and his White House. That''s because the American body politic can only really focus on one thing at a time, and so there''s little time for anything else aside from the madcap antics of of Gilligan, the Skipper, the Millionaire and his wife, the Movie Star, the Professor and Mary Ann...and the rest. Some liberal blogs and right-wing talk radio are lined up in circular firing squads, and the op-ed columnists have trained their fire on Hillary''s lonely teardrops or Barack''s Church of the Poison Mind.

While no one was looking, the economy nosedived, gas prices have soared, the war in Iraq is as unpopular as ever and Osama bin Laden is still on the loose. And so while none of us were paying attention, our 43rd president just hit a major milestone.

George W. Bush is now the most unpopular president in recorded American history.

(cont)

[shanev137]

Trickled on economic, at it again.

Is anyone on here old enough to remember the economy back late 70''s and early 80''s?

[jwind11]

Worse than Richard Nixon in the days before he resigned in disgrace during Watergate, worse than Jimmy Carter during the Iran hostage crisis, much worse than Bill Clinton when he was impeached. Just as Roger Bannister raced through what once seemed the unreachable 4-minute mile, Bush has burst through a barrier once also thought impossible, below the 20-percent mark.

Check this out:
George W. Bush''''s overall job approval rating has dropped to a new low in American Research Group polling as 78% of Americans say that the national economy is getting worse according to the latest survey from the American Research Group.

Among all Americans, 19% approve of the way Bush is handling his job as president and 77% disapprove.

When it comes to Bush''''s handling of the economy, 14% approve and 79% disapprove.

Among Americans registered to vote, 18% approve of the way Bush is handling his job as president and 78% disapprove.

McCain is Bush 2.0




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Posted by taotxzen

yea, but how does he feel about concidering?

[taotxzen]

Poor spellers are welcoem on this sight!

[jon_mccain]

ever think that, the problem is to many americans concidering? think about it. muslims hate us because of all of our concidering.

Posted by jwind11

Hey genius, you might want to "concider" that the proper usage is "too".

[easeup-2009]

"Poor spellers are welcoem on this sight!

Posted by taotxzen at 03:51 PM : Feb 20, 2008"

AWSOME!!!!!!

[ioweign]

concider? concider? i don''''t know what that means, so not sure I want to do it. Not sure I want americans concidering either.

Posted by jwind11 at 03:35 PM : Feb 20, 2008

That is how Bush invaded Iraq - didn''t want Americans to consider either...

[sgtrds]

"Poor spellers are welcoem on this sight!

Posted by taotxzen at 03:51 PM : Feb 20, 2008"

AWSOME!!!!!!

Posted by easeup at 03:55 PM : Feb 20, 2008

Amon!

[excoachken]

It is amazing how neocons want to re-write history to bash Carter and prise the empty headed Reagan. If Carter was not an honorable man, he could have easily won a second term by making the deal with Iran that Reagan did. As a result of his ethics, Reagan looked like a hero in the rehearsed release on hostages which was all made possible by shipping weapons and airplane parts to Iran, which were later used against our own forces. It is impossible to say how many G.I.s died to elect "the second rate Actor" President?

[mudrose-2009]

Now you can all justify your class warfare jargon. Be careful what you wish for because....

[jwind11]

Which is more complicated? spelling? or the workings of the American economy?

My opinion is the economy is way more complicated than spelling is (especially with dictionary, spellcheck etc.) . My point being, you can''t spell, you probably aren''t qualified to give "facts" about economy.

[mudrose-2009]

well it looks like the Bush economy bandaids are not going to forestall the bad news before he leaves office. which also means John McCain and whatever other loser he chooses as his vp running mate can kiss their assses goodby.
The republicon borrow and spend policy....translated....the biggest theft of your tax money in history has us out on a breaking chinese limb.
rest assured, those hypocritical bastions of personal responsibility will cast all blame on the next Dem pres
Posted by ainttaken

Well, well, I suppose George Bush extended all those loans to prospective house buyers who took Arms without thinking twice. Why if Big Nanny Government was in charge, they would have given you a hut, maybe some crawl space for you to rest your ******* heads. It''s the American electorate that created the housing problem and the credit crunch. Put the blame on yourselves for lack of restraint. Government doesn''t run the lending industry.

[easeup-2009]

"It is amazing how neocons want to re-write history to bash Carter and prise the empty headed Reagan. If Carter was not an honorable man, he could have easily won a second term by making the deal with Iran that Reagan did. As a result of his ethics, Reagan looked like a hero in the rehearsed release on hostages which was all made possible by shipping weapons and airplane parts to Iran, which were later used against our own forces. It is impossible to say how many G.I.s died to elect "the second rate Actor" President?

Posted by exCoachKen at 04:04 PM : Feb 20, 2008"

I think Carter''s lack of leadership & decisiveness emboldened the Mullahs. If he would have dropped the hammer HARD on them right after they took the hostages I would bet we wouldn''t be talking about 9/11, Iraq, etc.

Take off your partisan hat for a minute & read this:

http://www.iranian.com/Opinion/2004/September/War/

[matter77]

Like Karlgaard says, most business journalists are failed sports writers and this mindless garbage from AP is more evidence of the same. AP writers aren''t particulary bright, they''re not particularly good writers, and they aren''t friendly to business. They''re idiot scaremongerers and if you''re dumb enough to sit there and hold your mouth open like a baby bird, they''ll be glad to spoon more of the same right down your throat.

[ioweign]

Well, well, I suppose George Bush extended all those loans to prospective house buyers who took Arms without thinking twice. Why if Big Nanny Government was in charge, they would have given you a hut, maybe some crawl space for you to rest your ******* heads. It''s the American electorate that created the housing problem and the credit crunch. Put the blame on yourselves for lack of restraint. Government doesn''t run the lending industry.

Posted by mudrose at 04:09 PM : Feb 20, 2008

Yea - just like the S & L Scandal back under whats his name. It is called "No Oversight"....


It''s the good girls who keep diaries; the bad girls never have the time.
Tallulah Bankhead

[random_radar]

The Fed raises the interest rates to fight inflation and lowers interest rates to avoid depression.

There is no limit to how high the interest rates could be raised, so the Fed can always stop inflation theoretically.

But there is an obvious limit to how low interest rates can go--zero. The Fed cannot stop a depression, and a depression is what they apparently fear.

The Fed is getting close to running out of options, and then there will be nothing to stop the economic collapse. Its so exciting to watch the end!

[jwind11]

jwind11
feel better about yourself now? an old muslim proverb.
an increase in arrogance brings about a decrease in wisdom.


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Posted by ainttaken

equate skyk being a bad speller with arrogance please

[mudrose-2009]

Yea - just like the S & L Scandal back under whats his name. It is called "No Oversight"....


It''''s the good girls who keep diaries; the bad girls never have the time.
Tallulah Bankhead
Posted by IOWEIGN

Sarbanes/Oxley Tallulah.

[excoachken]

To easeup: If a person wants to know why 9/11 occurred they do not have to research ancient history, just read bin Laden''s manifesto, published in the mid 90''s. He lays out the case, including our coddling of Israel while ignoring the plight of the Palestinians. carter was decisive and his initiatives had the world closer to peace in that part of the world than it has ever been since. Reagan introduced the "win regardless of impact" type of Rovian political machinery that puts Party above national interests.

[rudy654-2009]

I think Carter''''s lack of leadership & decisiveness emboldened the Mullahs. If he would have dropped the hammer HARD on them right after they took the hostages I would bet we wouldn''''t be talking about 9/11, Iraq, etc.
Posted by easeup at 04:10 PM

Now it''s Carter''s fault. Iran is responsible for 9/11 and Saddam Hussein. It just keeps getting better.

[jwind11]

Which is more complicated? spelling? or the workings of the American economy?

My opinion is the economy is way more complicated than spelling is (especially with dictionary, spellcheck etc.) . My point being, you can''''t spell, you probably aren''''t qualified to give "facts" about economy.


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Posted by jwind11

Leads me to believe that skyks financial/economic problems are from lack of education, not from Bush.

[easeup-2009]

"Now it''''s Carter''''s fault. Iran is responsible for 9/11 and Saddam Hussein. It just keeps getting better.

Posted by rudy654 at 04:22 PM : Feb 20, 2008"

Muslim extremists, not Iran, Professor.

You aren''t that bright, are you?

[rudy654-2009]

Posted by easeup at 04:25 PM

No, I guess I am not as bright as you are, what with your ability to tie 9/11 in with Carter and Saddam Hussein. My hat is off to you and your glorious brain.

[jwind11]

"Now it''''''''s Carter''''''''s fault. Iran is responsible for 9/11 and Saddam Hussein. It just keeps getting better.

Posted by rudy654 at 04:22 PM : Feb 20, 2008"

Muslim extremists, not Iran, Professor.

You aren''''t that bright, are you?


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Posted by easeup

no he isn''t , he spent all his school days concidering instead of studying.

[ioweign]

Muslim extremists, not Iran, Professor.

You aren''''t that bright, are you?

Posted by easeup at 04:25 PM : Feb 20, 2008


Operation AJAX - the US picks another ''winner''...

[rudy654-2009]

Posted by jwind11 at 04:26 PM

And I am a still consideran! But you Jethro, ought to start your deciferin.

[easeup-2009]

coachken,

I actually read somewhere that the real reason OBL was bent towards the West was that Kuwait & the Saudi''s came to the U.S. for help when Saddam invaded--NOT OBL. If you recall, the Taliban was the deciding factor & kicking the Soviets out of Afghanistan. OBL got bitter because he wanted to be the hero again but wasn''t asked.

[antoniof123]

Fed Issues Gloomy Economic Forecast - Didn''t the Administration and the Fed say the opposite just a few weeks ago.

Well, if I were George or anyone else in the administration I would start saying the opposite of everything I believe because they have been wrong on everything so far.

[jwind11]

I found it!! The meaning of concidering...

"concidering" or "to concider" -- To blame all your own personal issues on current president in order to make yourself feel better. used in a sentence "skyk spent all afternoon on cbsnews.com concidering."

[watcher269-2009]

Ahh, the truth from a failed administration propped up from an illegal war. If it was not for 9/11 this country would have just started recovering from a recession/depression that always happens during a Republican administration. If not for WAR - republicans would NEVER sustain an economy!

[easeup-2009]

"Ahh, the truth from a failed administration propped up from an illegal war. If it was not for 9/11 this country would have just started recovering from a recession/depression that always happens during a Republican administration. If not for WAR - republicans would NEVER sustain an economy!


Posted by watcher269 at 04:33 PM : Feb 20, 2008"

uhhh....there WAS a recession when Bush took office. Hence the low interest rates, the housing boom & the subsequent housing slump. This was never a "war economy" like WW11. The economy grew on the record housing market & now, because of stupid borrowers and greedy lenders, there''s going to be a correction.