Democratic Underground Latest Greatest Lobby Journals Search Options Help Login
Google

Economists Question Fed Projections

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » Latest Breaking News Donate to DU
 
UpInArms Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jul-25-04 08:17 AM
Original message
Economists Question Fed Projections
http://www.washingtonpost.com/wp-dyn/articles/A10518-20...

The Federal Reserve's bullish economic outlook for the year cheered investors initially when it was released Tuesday, but it appears to be too rosy, several economists said this week.

Central bank policymakers predict a big pickup in economic growth with tame inflation and slowly rising interest rates, according to their semiannual monetary report to Congress, which was delivered Tuesday by Fed Chairman Alan Greenspan.

"Chairman Greenspan donned his Goldilocks outfit," in presenting the report, Ethan Harris, chief U.S. economist for Lehman Brothers Global Economics wrote to clients yesterday. "We think he is being a bit overly optimistic."

<snip>

In particular, critics questioned the forecast by most members of the central bank's top policymaking group, the Federal Open Market Committee, that the economy will grow between 4.5 percent and 4.75 percent this year, on an inflation-adjusted basis.

That would require "a virtual explosion in growth" in the second half of the year, because the economy expanded much more slowly than that in the first six months, said Mickey D. Levy, chief economist at Bank of America Corp., echoing other analysts.

...more...

Printer Friendly | Permalink |  | Top
UpInArms Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jul-25-04 08:23 AM
Response to Original message
1. have to add one more little tiny paragraph
because of the subject matter :D

The policymakers generally missed the large decline in inflation that occurred from 1981 to 1986 and the recessions of the early 1980s, the early 1990s and 2001, the researchers found.

Anyone else notice which administrations were in office during those "missed" projections?

Printer Friendly | Permalink |  | Top
 
mom cat Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jul-25-04 09:02 PM
Response to Reply #1
9. Nice catch UpInArms. As to your question, beats me. Could it have
been the republicrooks? :evilgrin:
Printer Friendly | Permalink |  | Top
 
SheilaT Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jul-25-04 09:38 AM
Response to Original message
2. You can be sure that between now and November 2nd
we'll be fed an unending pack of lies about how good the economy is, how many jobs have been created, and so on and so forth until even the unemployed and homeless themselves believe it. And then, on November 3rd, surprise surprise! The economy will turn out to have been in a shambles and it WAS ALL CLINTON'S FAULT!
Printer Friendly | Permalink |  | Top
 
Green Lantern Donating Member (277 posts) Send PM | Profile | Ignore Sun Jul-25-04 10:16 AM
Response to Reply #2
3. Job creation
Who in their right mind believes what the gov't is putting out on job creation over the last few months? They have lied about everything else, why not this?

The 'improvement' in the economy only seems to apply to the corporate world.
As Greenspan fights inflation, what he is really doing is keeping down wages and earnings for us wee folk, while creating conditions for the improvement of earnings in the corporate world. I would suggest that, rather than the story they have fed us for a couple of years now, the real reason interest rates came down to 40 or 50 year lows is the consumer credit debt. They didn't want to risk the massive losses that would result from actual or de facto bankruptcies. They reduced interest rates to give consumers relief until such time as they thought it safe to resume higher rates. The coprporations 'sacrificed" for the greater gain.
Printer Friendly | Permalink |  | Top
 
UpInArms Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jul-25-04 11:12 AM
Response to Reply #3
6. Welcome to DU Green Lantern!
Glad to have you with us :hi:
Printer Friendly | Permalink |  | Top
 
ixion Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jul-25-04 11:40 AM
Response to Reply #3
8. yeah, I've been wondering how people can think there are jobs
Edited on Sun Jul-25-04 11:41 AM by ixion
being created, when thousands of layoffs are being announced daily.

I think the only growth industries right now are security and military... oh yeah, and Black Water is hiring mercenaries. :eyes:


Welcome to DU, Green Latern. :hi:



Printer Friendly | Permalink |  | Top
 
54anickel Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jul-25-04 10:27 AM
Response to Original message
4. UIA, check out this toon from back when he first cut the rates - The
Printer Friendly | Permalink |  | Top
 
UpInArms Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jul-25-04 11:10 AM
Response to Reply #4
5. has Meanspin's nose been growing?
He looks a lot like Pinochio!
Printer Friendly | Permalink |  | Top
 
cliss Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jul-25-04 11:13 AM
Response to Original message
7. Alan Pondscum is an indentured servant
to the Bush Mad-ministration. He is their lackey, their American Poodle. We've all read how he's made "rosy" statements, or "cheerful" prognoses about the economy, when in fact it's knocking on death's door.

Or how about his statements that the "average consumer is doing fine", and "no, the credit card debt is not ridiculously high, nor is he paying too much percentage-wise on his mortage". He's doing great.

I wouldn't trust this guy as far as I can throw him. Goldilocks. Imagine that Old Crony in a blond wig.



Printer Friendly | Permalink |  | Top
 
struggle4progress Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jul-27-04 12:09 AM
Response to Original message
10. kick
:kick:
Printer Friendly | Permalink |  | Top
 
DU AdBot (1000+ posts) Click to send private message to this author Click to view 
this author's profile Click to add 
this author to your buddy list Click to add 
this author to your Ignore list Sat Oct 25th 2014, 08:44 AM
Response to Original message
Advertisements [?]
 Top

Home » Discuss » Latest Breaking News Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators


Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC