1. Both business investment and consumer spending are way down (consumer saving is way up):
Most notably, consumer spending fell a more than expected 1.2%, after a 0.6% improvement in Q1, and even the Q1 blip was merely a function of one-time tax rebates that concluded in May. On an adjusted basis excluding the benefits of one-off consumer fiscal stimuli, the consumer deterioration is truly unprecedented. As Rosenberg puts it:2. Large numbers of people are giving up hope of finding jobs:Business investments continued their downward trajectory after an unprecedented 39.2% plunge in non-residential investment in Q1, to be followed by another 8.9% drop in Q2.
"Imagine, government transfers to the household sector exploded at a 33% annual rate, while tax payments imploded at a 33% annual rate and the best we can do is a -1.2% annualized decline in consumer spending in real terms and flat in nominal terms? What do we do for an encore? In the absence of the fiscal largesse, it is quite conceivable that consumer spending would have shrunk at a 10% annual rate last quarter!" [Emphasis in linked article - Borepatch]
The unemployment rate dropped 200 basis points, from 9.6% to 9.4%. That's great news. Except that labor force participation also dropped 200 basis points, which is what's propping up those figures. People basically gave up looking for work, and therefore aren't counted as unemployed.Compare and contrast MSM coverage of the economy now with MSM coverage of the economy in 2003.
What I can't figure out is how a bunch of smart, well-educated media professionals simply don't understand Google. It's like they think that once they've written something, it's all over, and nobody will be able to find it.
They also don't understand that some of us now want to find it. Quis custodiet ipsos custodes? We do.