Now I am over here . . . now I am over there . . .

Perhaps what the economy needs is not a Fed chief, but a psychiatrist. It seems like it might need some lithium more than a rate cut.

This morning the Bureau of Economic Analysis, which calculates GDP, released its new estimates for the second quarter. Much to my personal surprise, it was a big upward revision. According to the BEA, the economy grew at an annualized pace of 4% in the second quarter, up from an earlier estimate of 3.4%. That estimate was itself a big upward surprise, after a very disappointing first quarter during which the economy grew at a tepid 0.6% annualised rate.

Whatever manic high we hit in the second quarter, needless to say, has now worn off. Economists are talking about something in the 1.5-2.5% range for the current quarter, with a projected downtrend heading into years end.

Comments

Annualise?

I think Inspector Morse was quite clear that the s should be a z, even on the other side of the Atlantic.

Posted by JohnF | August 30, 2007 3:38 PM

If that surprised you, you should be reading Kids Prefer Cheese!

http://mungowitzend.blogspot.com/2007/08/meanwhile-back-in-real-economy.html

Posted by angus | August 30, 2007 10:29 PM

The second quarter ended almost two months ago! That's practically in another universe!! Didn't we still have easy credit in June?

And the sky was a more beautiful shade of blue...

Posted by Cliff Mason | August 31, 2007 5:45 AM

Perhaps what the economy needs is not a Fed chief, but a psychiatrist. It seems like it might need some lithium more than a rate cut.

Which leads one [or, at least, me] to inevitably think of a scene from The Adventures of Buckaroo Banzai set in a psychiatric hospital where a pleasant female voice comes over the PA system saying, "Lithium is no longer available on credit." For years, I used that soundbite as my 'new e-mail' announcement. Should see if I can dig it up somewhere.... ..bruce..

Posted by bfwebster | August 31, 2007 8:45 AM