MICKEY KAUS on economic reporting at the New York Times: “It’s indeed deeply disturbing to learn that higher gas prices have held down demand, causing those prices to fall back to a level at which demand begins to rise again! It’s almost as if some insidious law was at work–as prices rise, demand declines! As supply increases, prices fall! You can’t win!”
Others were similarly amused: “How can anyone read that and not laugh?” Apparently, by being an editor at the NYT!
UPDATE: More here:
During a quarter century of analyzing and forecasting the economy, I have never seen anything like this. No matter what happens, no matter what data are released, no matter which way markets move, a pall of pessimism hangs over the economy.
It is amazing. Everything is negative. When bond yields rise, it is considered bad for the housing market and the consumer. But if bond yields fall and the yield curve narrows toward inversion, that is bad too, because an inverted yield curve could signal a recession.
If housing data weaken, as they did on Monday when existing home sales fell, well that is a sign of a bursting housing bubble. If housing data strengthen, as they did on Tuesday when new home sales rose, that is negative because the Fed may raise rates further. If foreigners buy our bonds, we are not saving for ourselves. If foreigners do not buy our bonds, interest rates could rise. If wages go up, inflation is coming. If wages go down, the economy is in trouble.
I suspect this reflects the bad economic conditions at newspapers, rather than in the nation as a whole. Workers at GM, Ford, and other uncompetitive companies probably have an unrealistically negative view of the economy, too.