PATHETIC – AT 9:17 A.M. ET:  A new report just out shows just how weak the American economy is.  If this were a patient, a trip to the emergency room would be indicated.   From CNBC:

The U.S. economy grew much slower than previously thought in the second quarter as business inventories and exports were less robust, a government report showed on Friday, although consumer spending was revised up.

Gross domestic product growth rose at annual rate of 1.0 percent the Commerce Department said, a downward revision of its prior estimate of 1.3 percent. It also said after-tax corporate profits rose at the fastest pace in a year.

Dismal growth.  Good corporate profits, but the corporations are afraid to spend their money.  It's the uncertainty factor, and for good reason.

Economists had expected output growth to be revised down to 1.1 percent. In the first quarter, the economy advanced just 0.4 percent. The government's second GDP estimate for the quarter confirmed growth almost stalled in the first six months of this year.

The United States is on a recession watch after a massive sell-off in the stock market knocked down consumer and business sentiment. The plunge in share prices followed Standard & Poor's decision to strip the nation of its top notch AAA credit rating and a spreading sovereign debt crisis in Europe.

While sentiment has deteriorated, data such as industrial production, retail sales and employment suggest the economy could avoid an outright contraction.

COMMENT:  Given this administration's record, they'll probably make things as bad as they can be.  Obama must go, and the thought of a Republican president taking the oath a year from January brings smiles.  But winning the election, as we regularly point out here, is not a done deal.  I think it will be very close, unless one side implodes politically.

August 26, 2011