Another good news/bad news economic story. The New York Times reported on Friday that the US economy grew by 3.3% in the second quarter, beating previous estimates of 1.9 percent growth. Is this good news? Well according to Reuters, the economy is probably heading for a recession by year-end as the housing crisis worsens. On the positive side, it should be relatively short and mild, according to the U.S. Chamber of Commerce!
Joshua Shapiro, chief U.S. economist at the research firm MFR, notes that the boost in the economy came from tax rebate checks and a surge of foreigners buying America's dollar-depressed products. In other words, the “R” word is still coming. Merry Christmas!
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