Chicago Daily Observer

Late next week the government will release initial estimates of real economic activity in the second quarter. Not long ago, in early April, when the quarter was just beginning, the consensus forecast for Q2 2008 real GDP growth was 0.0%, with as many economists predicting contraction as were predicting growth.

Now, three months later, the consensus is up to 2.2%. And no surprise – we are forecasting a 3% growth rate, more bullish than almost any other economist.
Yes, it is true that the home building and autos sectors have been hammered. But, it is not true that this weakness has spread. Outside those sectors, the economy is not just healthy but downright strong, reflecting relatively low tax rates and loose monetary policy.

Home building is still correcting from the excess liquidity of Alan Greenspan’s final years, but home construction will likely turn up by early 2009. That ... Read More...

In Germany, Sen. Obama announced that he is a “Citizen of the World” in a campaign speech directed at many tourists, Germans, and the US media. Being a Citizen of the World is hard to classify on a passport or an Olympic competition, but the process of obtaining World Citizenship seems simple enough: Gather $300 Million, spend it like mad to get your party’s nomination…lure 200,000 Germans into an arena…make a slew of odd and bombastic declarations…and you pretty much get your World Citizenship.

An side effect of World Citizenry seems to be a complete shutdown of your constituency. Here’s a tally of news reports from the 7th Ward in Chicago (within Obama’s previous State Senate District) over the time that Sen. Obama has been travelling.

Bruised and battered…police reports, on July 18 at 5:30 p.m., Barbara Miller, 61, of the 7600 ... Read More...