[lbo-talk] Economy Grew More Than Expected

Doug Henwood dhenwood at panix.com
Thu Aug 28 07:27:36 PDT 2003


Dwayne Monroe wrote:


>[Synopsis: lots of military and continued consumer
>spending are putting fuel in the tank. I wonder, why
>are consumers still buying as if incomes were secure?]

1) About 94% of the labor force is employed, and real wage growth is modestly positive. 2) Cashout mortgage refinancing has been injecting $160 billion a year into personal checking accounts. 3) Americans are optimistic people, and they like to express that optimism by buying durable goods.

Doug



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