Moody’s Lowers Economic Growth Outlook Moody’s Analytics said its near-term outlook for the U.S. economy has fallen significantly in the past month wake of the debate over the U.S. debt ceiling and the downgrade of the nation’s credit ratings by Standard & Poor’s . Moody’s Analytics, a sister company to credit-ratings company Moody’s Investors Service, now expects real gross domestic product to increase at an annualized rate of about 2% in the second half of this year and just over 3% next year, compared with its estimate a month ago for growth of 3.5% for the second half of this year and through 2012. The firm attributes most of the expected decline to a loss of business, investor and consumer confidence, noting the economy’s improving fundamentals such as the strengthening of business’s balance sheets and consumers’ strides in cutting household debt. The credit-rating company also said it thinks the odds of a renewed recession over the next 12 months — now at 1 in 3 — will increase if stock prices continue to fall. Moody’s maintains that the odds of a renewed recession rise with each 100-point drop in the Dow Jones Industrial Average. While Moody’s expects the economic recovery will continue, prospects for economic growth and job creation have “diminished substantially.” Though the U.S. economic recovery looked healthy at the beginning of the year, a series of events have hurt business, consumer and investor confidence, Moody’s said. These include surging prices for food and gasoline, natural disasters in Japan, Europe’s debt crisis and, most recently, the U.S. debt woes. The economy needs to grow 2.5% to 3% a year to create jobs fast enough to keep the unemployment rate stable, Moody’s said. However, Moody’s said it doesn’t think this will happen soon. http://blogs.wsj.com/economics/2011/08/15/moodys-lowers-economic-growth-outlook/ Businesses and investors have no confidence in Obama because Obama cannot waver from his progressive agenda. He is an inflexible demagogue, and he's been spending like a drunken sailor. The people are poised to put a stop to it. _
On what, specifically? Another state government/union bailout? More bank bailouts? Subsidizing 'Green' bull(*)(*)(*)(*)? More and longer unemployment benefits? $10,000 in every pot? Lay it out Mr. Keynes.
More great news. another downgrade,...and what will Obama do? he will blame the 1/2 of the gop congress.
The most intelligent and nuanced POTUS ever has led us to destruction. His complete and utter lack of experience and education has given us everything a truly incompetent person can provide.
There you go again Mr. Glock with your doomsday "unrest" theme. You've scaled back the violent edge but the underlying theme of 'panic!' is still lurking. Moody's would raise the economic growth outlook if we courted industry back to our shores. Hey, I heard industry's number one complaint about American workers is that they're too expensive to insure... Wonder what we could do about that?
What do you expect to happen? Obama and the Democrats have spent more in 1 year then the Bush Tax cuts reduced over 9 years and none of it did any good.
Exactly. The "stimulus" was a deferred trillion dollar tax increase and it did nothing...and still lefties furiously pound their tax drums.
Have faith, the American voters understand more than the elitist slob Democrats think they do. This is evidenced by the Dems losing a historic 63 seats in the House in 2010.
Oh, a month of Republicans debating whether they should destroy our economy or not, and you blame it on the democrats? We told you their stupidity and showmanship would hurt the economy, and we were right. Republicans destroyed the economy on purpose to win over their retarded base.
You know the Democrats are all done in 2012, just like 2010. You simply can't win elections with unemployment at 9.2%, under employment 16.2%, a cumulative national debt that was $7.45 Trillion in 2009 $14 Trillion now and will be neat $17 trillion by election day. Gasoline hovering at $4 a gallon even though we have enough natural gas to power vehicles for 100 years right now with no more drilling. A simple commitment to power all federally owned vehicles in 10 years or less would drive down the prices of gasoline and foster mass production of CNG vehicles putting Detroit back to work, but he won't do it. Food prices skyrocket while they subsidize ethanol @ $.45 a gallon. Their staunch refusal to make the kinds of cuts in their run away spending caused our credit rating to be downgraded for the first time in history. The failures of the Democrat policies simply can not be hidden.
Turn them into slaves? At least in Mexico you can get prescription meds cheap. OK, so lower the standard of living and then the pharmacuetical companies and medical outlets will have to take less money if they want to stay in business. Oops, didn't think of that symbiotic relationship did you? The people in the medical business need to wake up fast. They are not going to be immune from the outfall of eating the last scale on their tail..
We do blame the Democrats. Moody's didn't wake up the day after the debt ceiling was raised and decide that the mean old Republicans are not playing fair and that will harm economic growth. Obama and his supporters are watching his poll numbers drop and they are desperately looking for an excuse that lets him off the hook.
Why don't they try something different this time, and spend it on the people instead of the Banks and businesses. Want people to spend, give them money and turn em loose. 6 month holiday from taxes or something like that.
