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« Ad Sale | Main | Iraqi Bloggers React to Sovreignty » June 28, 2004Shock Wave: An Economic Sonic BoomIs the U.S. economy suddenly facing a "supply shock"? Russell Sheldon, senior economist at BMO Nesbitt Burns in Toronto, thinks so: In a neat 360-degree turn, the basic theme in the U.S. economy has swung from excess capacity to shortages. The shortage situation is extreme by any standards. Inventories at all stages of production plunged relative to sales in the initial months of this year. All three levels - manufacturing, wholesalers and retailers - are very short on inventories. ... Viewing the "moon shot" economic numbers for ISM and construction, I think the shortages story is lighting a fire under the economy that will last a while.Translation: the economy is now growing so fast that manufacturers, etc., can't keep up with demand. That's likely to fuel inflation a bit - but it's also likely to fuel a surge in production, which means a surge in employment and wages. The Bush Boom has major momentum now. Comments
Liberals view outsourcing as the new class warfare that they can exploit. Thanks, I have posted your link at my site Posted by: P. Stocks at June 28, 2004 4:20 PMThe good economic news must have libbies in a real quandry. They have to nit-pick the good news and generally sound like a bunch of wet blankets at the feelgood party! GWB needs to talk up the good economic news daily. For some reason, he's not gung-ho on self-promotion. Now is not the time for GWB to go all humble on us! Posted by: The Disagreeable Conservative Curmudgeon at June 28, 2004 4:48 PM"360 degree turn." I think the lesson here is don't invest through the bank of montreal Posted by: Steven DallaVicenza at June 28, 2004 7:07 PMI've heard it said that businesses have not expanded jobs as rapidly as usual due to the fear of terrorist attack-- being lean and mean would hurt them less if the economy suddenly went south. And that they would would wait for the last possible minute. That minute appears to be now. Posted by: Louis Wheeler at June 29, 2004 10:35 PMPost a comment
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