WHAT A RECOVERY! – AT 8:20 A.M. ET:  The White House has been hoping for good economic news to bolster the Dems' election prospects.  They may have to look hard to find something.  From the Financial Times:

The Federal Reserve is set to downgrade its assessment of US economic prospects when it meets on Tuesday to discuss ways to reboot the flagging recovery.

Faced with weak economic data and rising fears of a double-dip recession, the Federal Open Market Committee is likely to ensure its policy is not constraining growth and to use its statement to signal greater concern about the economy. It is, however, unlikely to agree big new steps to boost growth...

...In congressional testimony last month, Ben Bernanke noted “unusual uncertainty” in the economic outlook and in a speech last week the Fed chairman warned of a “considerable way to go” before the US achieves a full recovery.

Although Fed policymakers still believe the basic trajectory of the economy remains one of moderate expansion, there may be more attention given to heightened dangers of a sharp slowdown. “The FOMC will have to tone down its assessment of the economy in view of recent weak indicators on real growth, real consumption spending and employment,” said Brian Bethune and Nigel Gault, economists at Global Insight.

COMMENT:  Wow, what an incentive to go out and buy a Corvette.  I'll take mine in red. 

The fact is that you can learn a great deal about the economy by just going out and talking to people, and the talk is not good.  People are frightened.  Those with some extra cash don't want to spend it.  Employers are trying to make do with fewer people.  You don't hear much confidence in Obama economics.  And there well may be a long economic pause until business people find out who will win in November, and what changes are in store.

Obama, who was inspirational as a candidate, at least with his base, is a dud as president.  He couldn't get me to buy a cookie, and I love cookies. 

We now have to see if the Republicans, not known as the party of imagination, can provide the inspiration that the Democrats have not.

August 9, 2010