August 10, 2005


Bush Gives Rosy View of Economy
(Edwin Chen and Joel Havemann, August 10, 2005, LA Times)

President Bush expressed new confidence in the economy Tuesday, declaring that his policies had laid "the foundation for sustained growth." [...]

Bush's glowing comments about the state of the economy largely squared with increasingly bullish forecasts by private economists.

Just the day before, for example, New York investment house Goldman, Sachs & Co. revised its projections of economic growth from an annual rate of 3.5% to 5% from July to September, and from 3.4% to 3.8% for all of 2005. It saw the unemployment rate, which it had previously expected to hold steady at 5%, falling to 4.5% by the middle of next year.

On both economic growth and joblessness, the Goldman Sachs projections were brighter than the administration's own.

So the President actually gave a pessimistic view, no?

Posted by Orrin Judd at August 10, 2005 10:42 AM

Well, there's the headline for Thursday's New York Times -- "President Less Optimistic About Economy".

Posted by: John at August 10, 2005 11:09 AM

Or, perhaps, Bush lied!

Posted by: AllenS at August 10, 2005 11:28 AM

5% annualized growth in the third quarter? Wow.

Posted by: David Cohen at August 10, 2005 11:43 AM

Has Goldman-Sachs been infiltrated by Karl Rove?

Posted by: erp at August 10, 2005 11:52 AM

I don't know about Rove, but G-S stock is up over 40% in the past 18 months, and Lehman Bros. is up over 70%.

Meanwhile, Paul Krugman's cat is now chasing down Voyager.

Comment from Howard Dean would be appreciated.

Posted by: ratbert at August 10, 2005 12:06 PM

Ya. But we're all just flipping burgers, right? RIGHT?! Hello?

Posted by: John Resnick at August 10, 2005 12:48 PM

What happens when the summer vacations are over and the traders return refreshed to Wall Street in September? And what might this have to do with the Social Security reform effort set for the Fall?

Posted by: Luciferous at August 10, 2005 3:52 PM