Economic Update

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So how’s the economy doing?  Let’s take a look!

New York Times: U.S. GDP shrank by 6.1% in the first quarter, far worse than the “consensus” prediction of 4.7%.

Bloomberg: A full third of the country’s biggest banks need additional capital, according to leaked preliminary results of the Treasury’s stress tests.

RGE Monitor: According to a government report leaked to Sueddeutsche Zeitung, bad assets in the German banking system total slightly over a trillion dollars.  Over half of bad assets worldwide are in the European banking system, which has done much less to recognize them than we have in the U.S.

Wall Street Journal: Business fixed investment in the U.S. was down a whopping 37.8% last quarter.

Want some good news to go with that?  Sorry!  Apparently personal consumption was up 2.2%, which is probably a mixed blessing, and home prices were down 18% compared to last year, but didn’t quite fall at a record rate.  That’s the best I can do.  Ed Yardeni tries to do better, but one of the green shoots on his list of reasons to feel optimistic is the fact that Portfolio magazine has shut down.  Put me down as unconvinced.

DEMOCRACY DOES NOT EXIST...

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DEMOCRACY DOES NOT EXIST...

without free and fair elections, a vigorous free press, and engaged citizens to reclaim power from those who abuse it.

In this election year unlike any other—against a backdrop of a pandemic, an economic crisis, racial reckoning, and so much daily bluster—Mother Jones' journalism is driven by one simple question: Will America move closer to, or further from, justice and equity in the years to come?

If you're able to, please join us in this mission with a donation today. Our reporting right now is focused on voting rights and election security, corruption, disinformation, racial and gender equity, and the climate crisis. We can’t do it without the support of readers like you, and we need to give it everything we've got between now and November. Thank you.

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