NPR: FactWatch: The Economy

FactWatch: The Economy

From the speech:
"As we meet tonight, our economy is undergoing a period of uncertainty. America has added jobs for a record 52 straight months, but jobs are now growing at a slower pace. Wages are up, but so are prices for food and gas. Exports are rising, but the housing market has declined. And at kitchen tables across our country, there is concern about our economic future."

Analysis:
President Bush acknowledged the economy faces difficulties, but glossed over the seriousness of the problem. Some economists believe the U.S. is already in recession. The situation in the housing market is especially difficult. Today, the Commerce Department reported a record drop in new home sales in 2007 — they fell more than 26 percent. As a result of the bursting of the housing bubble, millions of Americans face foreclosure and could lose their homes. The troubles in the U.S. housing market have spread to the rest of the world through complicated securities that included subprime U.S. mortgages. There is fear that ultimately the global economy could fall into recession.

- John Ydstie

10:00 PM ET | 01-28-2008 | permalink

Comments

Millions of Americans face foreclosure because they made speculative investments and agreed to mortgages that they did not understand -- not because the housing bubble burst. They took a risk, why are more prudent taxpayers expected to foot the bailout?

Sent by Will | 10:21 PM ET | 01-28-2008

Again, NPR puts its liberal spin on the situation. You fail to point that the Congressional Budget Office said on Wed. JAN 23 (less than a week ago):

"Although recent data suggest that the probability of a recession in 2008 has increased, CBO does not expect the slowdown in economic growth to be large enough to register as a recession," CBO said."

Apparently, your fact checking needs some fact checking. But to be technical, this "fact check" was not even on a "fact" but rather based on Mr. Ydstie's opinion.

Sent by FinanceBuzz | 10:45 PM ET | 01-28-2008

The real question about the economy is whether we (either individually or as a whole) are better off than we were four years ago or even seven years ago. That is the real question of the economy and B. was not brave enough to approach it from the perspective of the very broad middle class. The answer would be no. People in the middle class are not better off than four years ago, or seven years ago.

Sent by Vijay | 10:51 PM ET | 01-28-2008

CBO is not an economic forecasting agency. If their is going to be a "slowdown in economic growth" than why is the Fed cutting interest by 3/4 of a point in one day and $150 Billion in tax rebates about to go out to Americans?

Sent by Vijay | 10:57 PM ET | 01-28-2008

THe Factwatch once aagin did not give Bush the credit that his facts are correct. Most economist use the criteria of two quarters in a row of negative growth for a slow down to be a recession. As there has not been a single month much less quarter of negative growth it is hard to see this as a recession. As to why did the Fed cut rates, because the Fed is trying to prevent a recession from occurring. Kind of like a ship captain changing course so aas to avoid a collision does not indicate that a collision has occurred. Only that the captain is trying to avoid a collision.

Sent by George | 1:23 PM ET | 01-31-2008

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