CBS: Economy ‘much weaker’ than thought, ‘recession territory’
While political opponents will squabble over details and good or bad the economy is shaping up to be, CBS published a new article to state that folks need to “face it”: the U.S. economy has a lot of problems and may be headed for more difficult times.
“..it is clear that the economy is much weaker than we thought,” CBS begins. “As Deutsche Bank economists note, over the past four quarters the non-consumer portion of the economy, notably businesses (you know, the ones that hire people), has grown at a rate of -0.2 percent. That’s recession territory.”
This analysis comes just days after the Commerce Department estimates on Friday: “Gross domestic product only expanded at a 1.2 percent annualized rate following a 0.8 percent expansion in the first quarter…”
photo: TaxRebate.org.uk
“GDP growth is clearly not going to reach 2 percent this year,” offered Brian Coulton, chief economist at Fitch Ratings.
“Growth was weaker than expected, although mainly because of a larger-than-expected drag from inventories, which is positive for future growth,” wrote Jim O’Sullivan, chief U.S. economist at High Frequency Economics in a client note.
The disappointing figures also make an interest-rate hike by the Federal Reserve less likely in September, according to Paul Ashworth, chief U.S. economist at Capital Economics, which revised its forecast for 2016 GDP growth to 1.5 percent from 2 percent.
Criticism of the Federal Reserve, warnings to consumers and a confession that 2015 was even worse than report: “GDP at the end of 2015 was only 0.9 percent” – all point to a rougher road ahead CBS forecasts.
“The trouble is that even avoiding another full-blown slump could still leave the economy adrift and searching for direction. That might mean no stomach-churning panic in the near-term, but plenty of fear about the storms to come.”
President Obama ranks as the fourth worst presidency on record with regards to GDP, averaging around 1.55% increase and NEVER having a year at 3% or greater – a feat not felt since Herbert Hoover.
According to Louis Woodhill, if the economy continues to perform below 2.67% GDP growth rate this year, Obama will leave office with the fourth worst economic record in US history.
Assuming 2.67% RGDP growth for 2016, Obama will leave office having produced an average of 1.55% growth. This would place his presidency fourth from the bottom of the list of 39*, above only those of Herbert Hoover (-5.65%), Andrew Johnson (-0.70%) and Theodore Roosevelt (1.41%)
That appears to be the case….or worst, he can catch Teddy.
President Obama in the Roosevelt Room. 3/15/09. Official White House Photo by Pete Souza
photo/ donkeyhotey
