Forgive me for taking a moment to toot my own horn but, in the Reuters article for which I’ve provided a link above, Reuters has finally taken note of the same thing I reported on August 5th – that 2nd quarter GDP was propped up by enormous stimulus spending, without which the economy may very well have sunk back into recession. (See https://petemurphy.wordpress.com/2010/08/05/shocking-2nd-quarter-gdp-report-points-to-further-recession/)
The real story here is that, with stimulus spending ebbing fast, the economy is in very serious trouble, a point that each new economic report seems to be driving home. And with each passing day, the Obama administration seems increasingly delusional in its belief that the economy is slowly on the mend. No wonder that Obama supporters are rapidly losing faith. Just as sadly, Republicans seem just as clueless about the need to fix broken trade policy. Batten down the hatches. We’re in for a hell of a storm!