Today, Yahoo! Finance decided to prominently feature this article, an article that makes some interesting points in the debate over whether we are headed towards recession.

Some of the stats:

• The jobless rate dipped from 5.1% to 5% in April. But part-time jobs due to economic reasons (aka people can’t full-time work) rose from 4.4 million a year ago to 5.2 million.
• We’ve lost 260,000 jobs this year.
• Consumer spending has slowed to 1% growth, the slowest since 2001.
• Consumer borrowing grew rapidly in March and continues to grow

As you may have guessed, this analysis of the economy is bleak, and the author’s claim is that the positive signs we’ve seen recently are merely covering up the general weakness of the economy.

I still believe we’re going to have a far clearer picture when we know GDP growth for the April-June quarter. As the market fluctuates, expect the media to overly panic about recession or to overly rejoice about avoiding the bullet.

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This entry was posted on Saturday, May 10th, 2008 at 3:08 pm and is filed under The Economy. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.