tag:blogger.com,1999:blog-4509173218981631666.post6035387430061183458..comments2023-11-05T07:47:39.708-05:00Comments on The Blog of Diminishing Returns: Savings Spree!Seth Gitterhttp://www.blogger.com/profile/05419336947867237619noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-4509173218981631666.post-44532306835552141782008-02-22T16:00:00.000-05:002008-02-22T16:00:00.000-05:00Seth remarks that given the Fed's cuts and the tax...Seth remarks that given the Fed's cuts and the tax rebate "It is unclear if the stimulus is the proper medicine or if we’ll be over the short term dip before the check gets in our pockets. "<BR/><BR/>I am still optimistic in the long run. The problems of savings he cites and others I do in my post are one's we are award of and hence can deal with. (I just hope we do!) But in the short run, I think the odds are we are in the middle of a rough spot. Look at the minutes from the most recent Fed meeting.<BR/><BR/>“In their discussion of the economic situation and outlook, and in the projections that they had submitted for this meeting, participants noted that information received since the December meeting had been decidedly downbeat on balance. In particular, the drop in housing activity had intensified, factory output had weakened, news on business investment had been soft, and conditions in labor markets appeared to have deteriorated. In addition, consumer confidence had remained low and business confidence appeared to have worsened. Although the functioning of money markets had improved notably, strains remained evident in a number of other financial markets, and credit conditions had become generally more restrictive.”<BR/><BR/>Add to that yesterday's announcement that the Leading Indicators fell again*** in January<BR/>and I think one could argue it is quite likely that without the boost from the Fed and the tax rebates we would not be seeing economic recovery in late spring.<BR/><BR/><BR/>*** feel free to insert notion that Leading Indicators have predicted nine of the last five recessions.Bob Gitterhttps://www.blogger.com/profile/14044726462116314459noreply@blogger.com