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Wednesday, April 20, 2005

Snow’s Latest Bumblings: U.S. Economy in a “Sweet Spot,” Deficit on Track

It would be hard to call this reality-based.  From Reuters:

…Earlier Wednesday, Labor Department data showed consumer prices rose more than expected last month, particularly the "core" measure excluding more volatile food and energy prices...That raised some fears of stagflation -- an environment of slowing economic growth and rising inflation -- but Snow dismissed the concern.

"I think that's a far cry from where we are," he said.

The U.S. economy is, for the time being, in a "sweet spot," Snow said, adding that "quite modest" bond spreads reflect generally sound economic conditions...

And to top it off, we have this concerning budget deficits:

…For its part, the United States will help address global imbalances by cutting its budget shortfall. Snow said the government is on track to cut the deficit to less than 2 percent of gross domestic product -- "around 1.5, 1.6 (percent), something like that" -- in a few years … He also played down fears of a national housing bubble, telling reporters that the housing market was "a different animal" from other markets…

John Snow's Fantasy Based Semi-Daily Journal continues...

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