U.S. Economy: Leading Economic Indicators Index Rose (Update3)

[arendt]

Source: Bloomberg News

May 19 (Bloomberg) -- The index of leading U.S. economic indicators rose in April for a second month, the first back-to- back gain since October 2006, signaling that the current slowdown will be short-lived...

``This particular slump seems to be milder than any recession since the Great Depression,'' John Lonski, chief economist at Moody's Investors Service, said in an interview with Bloomberg Television in New York.

Worst Has Passed

Treasury Secretary Henry Paulson and Wall Street chief executive officers including Vikram Pandit of Citigroup Inc. and Jamie Dimon of JPMorgan Chase & Co. are among those who have judged the worst of the credit crisis has passed. Corporate bond sales have climbed to a record and the cost of protection against default on debt sold by investment banks has receded since March.

Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=aLCq89inwn2o&refer=home

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What are these people smoking? I want some.

The Treasury Secretary says "the worst of the credit crisis has passed". Some flak for the Moody protection-racket (they shake companies down for good ratings) has the gall to mention the Great Depression as he claims how "mild" the current "slump" is.

Jeesus. Anyone who stays invested in the U.S. with these people running the show deserves what they get.

arendt

[no_hypocrisy]

1. I think I know why the government's figures don't jive with reality.

They are desperately trying to avoid the "R" word. If they can avoid two consecutive quarters with losses across the board, voila! No recession. So they have two sets of books.

[arendt]

3. You're right. They already threw away the inflation numbers (M3); this is just the next...

piece of honest statistics "deadweight" they have to throw overboard to keep their fantasy economy in the air.

Good thinking.

arendt

[Demeter]

6. I Think There Are Three Sets of Books, Maybe Even 4

Nothing jives with anything else anymore. Enron accounting.

[uppityperson]

2. Did it rise because people are panicking and stocking up on food?

[Tempest]

4. It rose because prices increased

Mostly in food and energy.

[arendt]

5. So they pretend that when are faced with those higher prices, folks will buy as much as before?

Or, borrow as much as before?

If this is the reason (and I do not doubt you, I just am not qualified to evaluate it), it is one of the most cynical bits of humbug I have ever heard.

arendt

[OwnedByFerrets]

7. Ive long ago stopped believing anything at all

that comes out of this administration. The numbers are cooked. PERIOD.

[knitter4democracy]

8. Bullshit. Come to Michigan.

Go to Indiana, Ohio, Florida, heck, anywhere and see what's really going on. They're cooking the books, and we all know it!

[a la izquierda]

9. yeah, well tell that to the women in this story...

http://www.cnn.com/2008/LIVING/wayoflife/05/19/homeless.mom/index.html

it's a fucking sin.

[Javaman]

10. Well since paulson lives in a rose colored rich viewed 2 dimensional world...

of course it looks great to him.

[aquarius dawning]

11. Very curious that the market is down 180 right now in light of that information.

This is the kind of news that should be causing a market rally for at least a day or two. I suspect people are still pulling money out of equities and investing/speculating in the energy bubble. I suppose a good share of money has been locked up in CDs for the time being too.

[Dreamer Tatum]

12. People are pulling money out of equities?

Have you followed the indexes lately? Anyone with ETFs has done well in the last couple of weeks.

[aquarius dawning]

13. Commodities based ETFs or all ETFs?

And I have watched my equities do pretty well the past couple of weeks but it still seems strange that the market isn't rallying behind this news. It should be up 180 based on news like this, not down 180. With oil rising to $130/barrel, it seems pretty clear where the money is flowing to.