The economy isn’t contracting like the media seems to hope. Gross domestic product increased during the first quarter at a rate of 0.6 percent. Anemic? Yes. Recession? No. Remember that a recession is defined as back to back quarters of negative GDP growth. So far that hasn’t happened, so the earliest we could know for sure that we’re actually in a recession would be in November, just as we enter the Christmas season and just after we’ve elected a new President.
Could it be that the media and all the pundits have a political reason for pushing recession on us? Nah, that never happens…
One thing I found interesting in today’s news was that exports have rebounded quite strongly. That’s a direct effect of a weak dollar. People seem to forget that a weak dollar makes American products more attractive overseas.
There is always more than one side to every story. I’m going to spend the next few days pondering who benefits from a recession. Maybe that’s who keeps screaming it from the rooftops.
Always follow the money. Remember also that $200 billion is getting mailed out in about 2 weeks. That should spur some spending.