Comments on: Leading Economic Indicators Decline

By: Steve Verdon

Steve Verdon — Fri, 22 Sep 2006 16:41:46 +0000

Why is it everything is a "correction" with the conservative leaning crowd? Seems if anything this argues for a far more interventionist approach to markets...which strikes me as not being very conservative.

By: McGehee

McGehee — Fri, 22 Sep 2006 13:26:58 +0000

but it is also possible that the decline in gasoline prices is bad news in that the declines are pretty steep.

The declines strike me as a correction of some pretty steep price increases from last year -- and prices still haven't gotten all the way back down to what they were before Katrina. If the fuel prices from which we were declining were a natural position for the economy, that would be one thing.

This is -- mostly, at least-- another.

By: Steve Verdon

Steve Verdon — Thu, 21 Sep 2006 18:49:02 +0000

Steve,

It is possible, but it is also possible that the decline in gasoline prices is bad news in that the declines are pretty steep. If part of that decline is due to declining economic activity, then the price decline isn't simply a good thing.

Wait and see, what the next couple of months say.

By: Steven Plunk

Steven Plunk — Thu, 21 Sep 2006 18:43:44 +0000

Would falling gas prices bring consumer confidence back up enough to offset the decline in housing starts? Also, given that crude prices are falling, and crude is used in many other products besides gasoline, do you think we will see less pressure on inflation allowing a reduction of interest rates?

By: MrGone

MrGone — Thu, 21 Sep 2006 18:40:04 +0000

Perhaps it's like many say, people 'feel' the economy much sooner than pundits 'see' it. Maybe this is why the administration doesn't understand why people don't get that the economy is doing so great. They get it just fine.

By: Wayne

Wayne — Thu, 21 Sep 2006 18:32:20 +0000

I slow my car down last weekend from 140 mph to 120 mph. My car was still going plenty fast.

Steve it seem that you keep implying we are heading for a recession or at least a bad economy. If not then what are you trying to say?

They economy can slow down and still be a strong economy. Yes housing starts are down but there are other indicators that have increase. Check links below. I believe that if fuel prices continue to drop it will have a very large positive influence on the economy. Most important is if we could get a good energy policy through the filibuster Senate, it will greatly help the economy. Companies like to be able to make long-range plans and without an assurance that there will be sufficient energy in the future it can make that difficult.

http://www.examiner.com/a-279510~IMF_Chief__Basic_Economic_Outlook_Good.html

http://www.census.gov/cgi-bin/briefroom/BriefRm

http://www.examiner.com/a-279510~IMF_Chief__Basic_Economic_Outlook_Good.html

By: Fersboo

Fersboo — Thu, 21 Sep 2006 17:54:27 +0000

2/10ths of a percent. Whoa, ease up off the brakes there!