The Bureau of Economic Analysis said that the economy grew at an annualised rate of only 1.3 per cent in the second quarter and revised down its estimate of first-quarter growth to only 0.4 per cent from 1.9 per cent. Is anybody really surprised by this? The housing market for 2011 is certainly slower than 2009 and 2010. The real question now is what do these numbers mean? Are we recovering? Or, have we really been in a recession the entire time and our elected leaders, as usual, want to slant the truth?
The danger now is that the economy has weakened to a point that will become self-reinforcing, with consumers and businesses so doubtful about the recovery that they further reduce their spending, undermining any rebound. Let us all hope that the first and second quarter were a mere "soft patch" and that the rest of this year brings some better news!
