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Thursday, July 26, 2012

GDP forecasts: Consumer spending to blame for weak Q2 growth - Jul. 25, 2012

GDP forecasts: Consumer spending to blame for weak Q2 growth - Jul. 25, 2012

"Those who went through the Great Depression were fundamentally changed for their entire lives. They were prone to hoarding," said Sean Snaith, director of the University of Central Florida's Institute for Economic Competitiveness. "I think the Great Recession is going to have similar lasting effects."
"The economy is facing a chicken-or-egg conundrum. If job growth doesn't pick up, consumer spending is unlikely to grow substantially any time soon. On the other hand, if consumers don't go out and buy more, companies don't have much incentive to hire more workers.
Unless something else snaps the U.S. economy out of this cycle, economic growth could stay around or below 2% for "as far as the eye can see," Bullard said."
...Naw...just sell more I-phones...

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