No U.S. Recession as Forecasts Improve to Weakest Expansion

[dkf]

Oct. 10 (Bloomberg) -- The U.S. has likely dodged a recession for now, even though it’s too early to sound the all- clear for the economy.

A string of stronger-than-projected statistics -- capped by the news on Oct. 7 of a 103,000 rise in payrolls last month -- has prompted economists at Goldman Sachs Group Inc. and Macroeconomic Advisers LLC to raise their growth forecasts for third quarter growth to 2.5 percent from about 2 percent. That’s nearly double the second quarter’s 1.3 percent rate and would be the fastest growth in a year.

“The U.S. economy doesn’t look like it’s double-dipping at all,” said Allen Sinai, president of Decision Economics Inc. in New York. “But it is a crummy recovery.”

That recovery still faces what economist Chris Rupkey in New York calls “a lot of headwinds.” These range from the sovereign-debt crisis in the euro zone -- and increasing likelihood of a recession there -- to political gridlock in the U.S. over the budget.

“We can skirt a recession,” said Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ Ltd. “But if headlines worsen in Europe and cause a major stock-market rout, it could lead to a loss of confidence here on the part of businesses and consumers and make forecasts for a recession a reality.”

http://www.businessweek.com/news/2011-10-10/no-u-s-recession-as-forecasts-improve-to-weakest-expansion.html

[PSPS]

1. Yes, there were routine reports like this in Soviet-era Pravda too.

It's all part of the pump 'n dump ritual now.

[Amonester]

2. oh... that 'make-believe' propaganda again...

trick: raise the indices so the 1% can make a killing (again) when the next panic sets in...

ca$ino still open