Bernanke speaks

Bernanke says economic outlook is worse
By JEANNINE AVERSA, AP Economics Writer
14 Feb 2008
WASHINGTON - Federal Reserve Chairman Ben Bernanke told Congress Thursday the economy is deteriorating and signaled a readiness to keep on lowering a key interest rate to shore things up.

A hint: Bernanke's willingness to "keep on lowering" rates is constrained - the lower limit is 0. (... and previous news suggests other Fed Governors may not be as ready to cut the prime!)

There was some good news this week, however:
Trade deficit falls after 5 record years
By MARTIN CRUTSINGER, AP Economics Writer
Thu Feb 14, 2008
WASHINGTON - Despite a soaring foreign oil bill and another record deficit with China, the overall U.S. trade deficit declined in 2007 after setting records for five consecutive years.

This seems to be how macro-market is supposed to work: dollar falls against foreign currencies, making U.S. exports cheaper to the rest of the world, and imports more expensive for American consumers - resulting in decreased trade deficit.

More good economic news:
Jobless claims fall
Thu Feb 14, 2008
WASHINGTON (Reuters) - The number of workers filing new claims for jobless benefits fell by 9,000 last week, the government said on Thursday, though a more reliable gauge of layoff trends rose to its highest in more than two years.

Well, okay - this is somewhat tempered "good news"... but let's take what we can get!

In other news, not so good:
Home sales fell in 45 states in 4Q
By ALAN ZIBEL, AP Business Writer
14 Feb 2008
WASHINGTON - Sales of existing homes fell in 45 states during the October-December quarter, with metropolitan areas showing growing weakness, a real estate trade group said Thursday.

'Course, if you're on Clinton's campaign staff, I guess you could claim that those 45 states don't really matter! - it's the other 5 that really count.