Wednesday, May 16, 2007

Ponies And Unicorns

Cheerleading at its finest. Reuters (05.16.07):
"The U.S. economy could still meet the Bush administration's forecast for 2.7 percent growth this year despite a weak performance in the first quarter, White House economic adviser Edward Lazear said on Wednesday.

Weaker exports and a steady slide in spending on homebuilding helped slow U.S. growth to an annual rate of just 1.3 percent in the first quarter, its softest pace in four years."

U.S. could still grow 2.7 pct 2007

"'We could still make 2.7 percent,' Lazear, chairman of President George W. Bush's Council of Economic Advisers, told reporters at a briefing in Paris."

"'I mean obviously it's harder when you have a 1.3 percent first quarter and you have to build on that.'"

Obviously. Even 1.3 might be pie in the sky. Folks are already speculating that first quarter's growth was really only around 0.5%.

We'll take the under, and we'll pay 3 to 1. Why? Here's one reason. Reuters (05.16.07):

"The pace of U.S. home construction advanced by 2.5 percent in April to a rate that beat analysts' expectations but building permit activity, which signals future construction plans, sunk to the lowest pace in nearly a decade, a government report on Wednesday showed."

April housing starts up 2.5 pct, permits fall

"Even though housing starts increased in April to the highest pace since December 2006, they were down 16 percent from a year ago and, in a sign the troubled housing market may not be turning the corner as quickly as hoped, building permits were off 28.1 percent from a year ago."

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