Bill Cheney
Bill Cheney
actions bona chances confidence cut demand directly downward edge growth impact increased indirectly job lay losses negative newly odds perhaps quarter recession spending spiral tend
With today's report, the odds of a negative quarter of GDP growth have increased substantially, and the chances of a full-fledged recession just went up -- perhaps approaching 50-50. Job losses cut directly into the spending of the newly unemployed, and indirectly tend to have a very real impact on the confidence of those who are still working. If demand falls, firms will lay off more employees, and the downward spiral could put us over the edge into a bona fide recession before the Fed's actions can take effect.
boost cuts defense growth net next percent produce rise risks spending stimulus tax
If even 5 to 6 percent GDP growth isn't enough to get any net hiring, then the risks rise that the stimulus from the tax cuts and defense spending could produce a one-time boost that will fizzle out next year.
employment next piece report
Next week's employment report will be a much more important piece of new information.
confidence consumer evidence items liable month next spending
All the evidence on consumer confidence would tell us that all spending on big-ticket items is liable to plummet in the next month or two.
expect growth healthy next percent totally
I think it's totally a blip. I expect to see pretty healthy growth in 2006. We'll be back to 4 percent next quarter.
clear evidence next recovery though time
Even though there probably is a recovery in the pipeline, there isn't going to be any clear evidence of it by the time we get around to the next meeting.
elf full operating workshop
Santa's workshop will be operating pretty much at full capacity. There just probably won't be much elf overtime.
coming fairly fed percent starts sticks
If unemployment sticks at about 6.0 percent and starts coming down, the Fed will probably feel it has to start tightening fairly soon.
inflation potential reality
Inflation is a potential risk. It's not a reality yet.
series
It's another in the long series of the no-news-is-good-news story about inflation.
chairman fed greenspan money period pumping start third toward weakness
I think we're toward the end of a period of real weakness and, by the third quarter, all the money (Fed Chairman Alan) Greenspan and the Fed have been pumping out will start to be spent.
adding businesses growing job market point profits
I think the job market is on a roll. Businesses are doing pretty well these days. Profits are growing nicely. I think businesses are at a point where they feel more comfortable adding people.
certainly hiring indication soon strong
It certainly too soon to be sure, but I think it's a very strong indication that hiring is getting on track.
gas goes living oil price
If you're living on the edge, then when the price of gas and heating oil goes up, you end up over the edge.