s skippy the bush kangaroo

skippy the bush kangaroo



Friday, May 16, 2003

happy armed forces day from the bush economic team

a minor rally in the dow jones fizzled out today, landing in negative territory, upon the release of a couple of downbeat reports (market it still open as of this writing, but not looking good).

the consumer price index fell 0.3 percent last month, after falling 0.3 percent the previous month. that's the largest decline in 18 months.

but wait, you say, aren't lower prices a good thing for consumers? you'd think so, but that signals a possibility of deflaction, something nobody wants. we don't really understand it ourselves. go ask max or brad or megan.

we assume that falling prices, coupled with a flat core index of inflation, looks like the folks selling us stuff won't be making as much money as they thought. and they're the ones who run things, so it's bad bad bad.

but wait, there's more! the hot hot hot real estate bubble seems to be cooling down. housing starts fell a larger-than-expected 6.8% (hey, is anyone besides us getting tired of the words "larger than expected" when talking about declines in economic indicators?)

most economists expected a decline of about half that.

things are bad in the economy? what do the repubblican's do? tax cut time!
posted by skippy at 12:10 PM |

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