Economic Recovery

WASHINGTON -- With the economic recovery only sputtering along, the congressional Joint Economic Committee called on the Federal Reserve yesterday to "cooperate" with the Clinton deficit-reduction plan by keeping interests rates low.Fearful that the proposed $496 billion in tax increases and spending cuts over the next five years could hamper growth, the committee said in its annual report on the economy that "the primary responsibility for ensuring an...

WASHINGTON - Previously owned U.S. homes sold in February at the second-strongest pace on record, adding fuel to the economic recovery that a group of private economists says is under way. Homes sold at an annual rate of 5.88 million homes, after soaring to an all-time high of 6.05 million in January, the National Association of Realtors reported yesterday. Analysts had expected a decline to 5.54 million. Low mortgage rates had already driven sales to a record 5.3 million in 2001, which included the start of the recession.

How do you spend an estimated $775 billion over two years without wasting money? That's the challenge President-elect Barack Obama has been struggling with in recent days as he assembled pieces of the economic recovery plan he is expected to present to Congress later this week. Economists of every stripe have urged that Congress quickly enact a massive short-term spending program to propel the economy out of a deepening recession that threatens to produce double-digit unemployment by the end of this year.

Americans hate taxes but, truth be told, these days they are more afraid of depression. So while Republicans are trying to move the masses toward tax rebellion with tea parties today in Annapolis and elsewhere intended to remind us of the pre-Revolutionary dumping of taxed British tea in Boston Harbor, they are unlikely to create much of a stir. For one thing, many American taxpayers are enjoying a nice tax cut this year - part of the effort to spur the lagging economy. For another, people are willing to accept a ballooning federal deficit if it means saving jobs and promoting an economic recovery.

Old-line American manufacturers have spent the recession cutting costs and improving efficiency so they can greet economic recovery as lean, mean fightin' machines.Stocks of cyclical companies took off a year ago, only to be knocked back as hopes for a quick end to recession were scuttled. They've been doing well lately, but would start really zooming again once a recovery kicked in."The industries that got the country into trouble in the first place will now get it out of it," predicted Eli Lustgarten, analyst with LTC PaineWebber Inc. "Economic recovery will be slow and there will be continued weakness overseas, but prospects look good if we use 1993 as our focus."

NEW YORK -- U.S. stocks were mixed yesterday as optimism about falling worldwide interest rates offset concern about the economic recovery.Stocks also were constrained by the budget debate in Washington, which is expected to be resolved later this week."

Washington. -- The bidding for tax cuts in the 102nd Congress has started. Senator Bentsen, Chairman of the Senate Finance Committee, has opened with a $72 billion tax-cut plan. Senator ++ Gramm has gone $18 billion higher. Before the rest of us join the auction, we should reflect on whether the country can afford for anyone to win.The facts are:* The proposals are schizophrenic. Incentives to boost consumption with a tax cut conflict with proposals to boost saving by expanding Individual Retirement Accounts and cutting taxes on capital gains.

Fall is the time to kick the tires of the brand-new models of the Big Three carmakers. It remains to be seen whether investors will similarly examine their stocks. Moving, as always, in a cyclical manner with the economy, these equities haven't equaled the performance of the overall stock market this year.Investors realized that the economic recovery is going to be a slow one. Ford Motor Co.'s stock is up the most and General Motors Corp. is also showing a gain, while Chrysler Corp. is down in price.

FINANCIALLY, how should we approach 2002? Financial Planning Perspectives says, "2001 has been difficult for many families, even before September 11. A once-invincible economy fell into recession and stocks suffered. Heading into 2002, many people are edgy about their financial situations." The newsletter lists "Smart Financial Moves for 2002:" Excerpts: "Build an emergency fund. Have a `cash cushion' of at least 3-6 months of bare-bones living expenses to help through a layoff. "Minimize debt.

In response to Bill Rixham's letter Dec. 14 ("Tea Party legitimate, Occupy not"), his characterizations of the Tea Party and the Occupy movements couldn't be any less accurate. Editor: In response to Bill Rixham's letter Dec. 14 ("Tea Party legitimate, Occupy not"), his characterizations of the Tea Party and the Occupy movements couldn't be any less accurate. The Tea Party, known in its present form since its inception in early 2009, is not a grass roots movement. It is described by a majority of the credible media outlets as "astro-turf" because of funding from groups like Freedom Works and their chair, former House Majority Leader Dick Armey, and endlessly promoted by Fox News.