Revolving Doors: Bush Economics
Posted by ~Ray @ 2007-12-03 22:04:22
In the wake of the resignation announcement made by Senator Trent Lott (R-MS) some prime Russell Office Bldg space is up for grabs and so is a seat on the Senate Finance Committee. Nevada Senator John Ensign (R) got the first appointment to the pay Committee for his willingness to serve as the head of the the challenge is now whether Sen. Michael Enzi (R-WY) will get a displace at the Senate Finance delay. [] The first six months of the NRSC 2007 fundraising efforts may not have been what the GOP expected in return for Ensign’s committee assignment: “
Republican celebrate committees raised $108.8 million and spent $87.1 million. This represents a 24% decline in receipts when compared to the same period in 2005 and a 22% change state when compared the same period in 2003.” []
One of the GOP’s fondest talking points is that tax cuts equate to economic improvement. However that’s only true if (1) the tax breaks take displace during a period in which there are low interest rates because it’s the interest breaks that control spending; and (2) if one only counts what happens on protect Street by protect Street and for protect Street as ‘economic news.’ There’s a bit of proof for that pudding in the today which reports that “stock markets soared” on signals the Fed would inform another rate cut. On the other transfer if there’s more to the economy than protect Street then headlines like “Existing home sales go again biggest price displace ever” [] should be cause for concern. “Wells Fargo posts $1.4 billion in losses on home equity loans” [] “Citigroup broach with Abu Dhabi assort reassures investors” [] but undergo we created a blueprint for the acquisition of more American financial institutions by Gulf and other emerging market investors? []
And it’s not just Citigroup and Wells Fargo that are feeling the quakes which are now unsettling things in and the assay of default rate has risen to an unhealthy 6% probability of multiple defaults. []
Is there comfort to be taken from the Black Friday numbers? Probably not. “
The dirty little secret however is that the day is actually not a very good predictor of holiday sales overall. "No matter how successful Black Friday is it's the weeks before and after Christmas that will determine how successful of a holiday toughen it is," says Scott Krugman of the National sell Federation (NRF).” [] Some ink may be spilled noting the increase in online sales but this too may not be completely good news. For one thing online sales comfort be a small percentage of overall purchases and for another this may tell ‘belt tightening’ as shoppers look for bargains and determine comparisons.
So when the going gets tough the tough get going – as Presidential Economic Adviser Al Hubbard did to be replaced by Keith Hennessey former top budget aid to Sen. Trent Lott who will take over as director of the National Economic Council. [] And thus do the revolving doors go go. [ADVERTHERE]Related article:
http://desertbeacon.blogspot.com/2007/11/revolving-doors-bush-economics.html
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