February 1, 2007

YET THE GOP RAN ON IRAQ?:

U.S. economy rolling along at a 3.5% clip: Workers' earnings and spending are up. But the Fed holds rates steady, citing tamer inflation (Molly Hennessy-Fiske, February 1, 2007, LA Times)

The Commerce Department reported Wednesday morning that inflation-adjusted economic growth surged to 3.5% during the fourth quarter, up from 2% in the previous quarter and above average for an expansion.

Later in the day, the Federal Reserve left its benchmark short-term interest rate unchanged, while citing a stabilizing housing market, rebounding economy and tamer inflation.

The Fed statement, issued after President Bush delivered a bullish view in his State of the Economy speech in New York, sparked a rally on Wall Street. The Dow Jones industrial average climbed 98.38 points, its biggest rise so far this year, to close near its all-time high.

Posted by Orrin Judd at February 1, 2007 7:51 AM
Comments

Who cares about economic well-being, we'd rather fight about Harriett Miers.

Posted by: sam at February 1, 2007 8:01 AM

Despite all the good economic statistics and high Dow Bush and the GOP were polling well below 50 on the economy. Due to MSM spin and poor communications the message that the economy was doing well wasn't sinking in.

As the evidence mounts of Dem's lack of seriousness on the war, lack of fiscal discipline, and worse ethics than the GOP it becomes more probable that 2006 was either voters wanting change for change or temporary amnesia. If true 2008 could work out well for the GOP.

Posted by: AWW at February 1, 2007 8:04 AM

I love an optimistic in the morning. No sarcasm intended.

Posted by: erp at February 1, 2007 8:54 AM

Of course the AP headline in their top stories of the day, as listed at Yahoo, is "2006 personal savings drop to 74 year low."

Low unemployment etc are buried in the story, as is the outdated way the savings-rate is calculated.

Difficult for the GOP to make headway against a vicious press corps out to distort everything.

Posted by: Jim in Chicago at February 1, 2007 9:52 AM

74 years ago...wasn't HOOVER (Republican) president and weren't we in the midst of the depression in 1932? O my, BUSH (Republican) is leading us into another depression.

Posted by: Dave W at February 1, 2007 2:18 PM
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