While this is not catgorically “good economic news” I find it rather “gutsy” that they essentially claim they deserve $50 billion in loan guarantees by the government.  They want the money to help them keep up with the increased demand for fuel efficient cars, like hybrids.  Consequently they want to put it to a quick vote so the money can be available this fall.

I am guessing that GM Vice Chairman, Robert Lutz watched Barack’s acceptance speech last night and realizes that this guy actually has a chance.  I further suppose that if Barack wins, their chances of getting these loan guarantees are much slimmer than their current White House contact, President Bush.

This rouses an interesting question.  The government bails out individuals, banks, foreign countries and even bailed out Chrysler years ago with an unprecedented loan, that if you read Iacocca’s book “Talking Straight,” he had to beg, plead, and argue with congress for months before he got his loan.    So, do we help out the auto industry?  And how far does government get involved in business?  How would you see that the money actually got invested into innovation and not squandered on ridiculous investments?

I’m not opposed to helping businesses in times of true need.  There could be jobs at stake.  But, governement intervention can get out of hand and we know where that leads.  Either way, I don’t think the way Lutz is positioning this request is a very effective way to go about it.

Read the full story at Reuters:

http://www.reuters.com/article/businessNews/idUSBNG18419220080829?feedType=RSS&feedName=businessNews

Today the economic growth of our country was revised to 3.3% annual rate based upon second quarter GDP results.  It had initially been reported to expand 1.9% a month ago and revisions were expected to come in at 2.7% annual growth.  This is very positive news for our economy as oil prices and housing has not seemed to be able to tip us into a recession, and as these fears ease so will tensions on Wall Street, and on your street as well.  Read the full story at Reuters:

http://www.reuters.com/article/businessNews/idUSN2525867620080828?feedType=RSS&feedName=businessNews

Very positive news for our economy was reported today when the Consumer Confidence Index rose to a better than expected 56.9 up from 51.9 in July.  This jump is reflected by consumers easing fears about the economy.  Read more at Reuters.

http://www.reuters.com/article/businessNews/idUSN2525867620080826?feedType=RSS&feedName=businessNews

I mentioned in a previous post some months ago the sky rocketing cost of fuel would spur demand and investment in alternative transportaion and energy sources, and the first salvo has been launched against the “big four.”

ZAP or (Zero Air Pollution) cars has announced it will invest 84 million dollars to build a new plant in SW Kentucky that will eventually produce up to 500 cars per day, and employ up to 4,000 Kentuckians.

Good news for our economy, and great news to ease our reliance upon fossil fuels.  As the price of gas drops we need to stay this course and not fall back into our old comfort zone.  Continuing our demand for alternatives will perpetuate this type of investment and lead to much more good news for the American, and World economies.

Read the complete story at WAVE3 news:

http://www.wave3.com/Global/story.asp?S=8898512&nav=menu31_2

Just a short entry to compare a few facts from what we’re facing today… And what we CAN come back from in this great country of ours.

In 1933, at the height of the Great Depression, unemployment was a staggering 25%! Right now we are hovering around 5%.

In 1929 there were 24,633 banks in the US. By 1934 8,537 banks had closed, filed bankruptcy, or been absorbed by other stronger banks. Less than a third of the banks then were members of the Federal Reserve, and most of them were playing the stock market with depositor’s money. Cash reserves (the amount of money required by law that banks must hold in the vaults) were pretty much ignored or outright falsified. The US ended 1934 with 16,096 operating banks, over a third less than in 1929.

Then there was the GDP. The Gross Domestic Product of this country FELL 36% from August 1929 to March of 1933. I’m not talking about the growth rate decreasing 36% as many want to define recession as a decrease in the growth. I’m talking a meltdown of 36% less products and services generated in this country in less than four years. And we’re running for cover while our GDP is still actually INcreasing.

Now…if this country can come back from that. You can consider what happened during the Great Depression good economic news for today’s economic forecast.

Fueled by the weak dollar, exports rose an unexpected 4% in June.  In addition, imports were up as well indicating good economic conditions as consumers demand more goods.  Economists feel that this increase in the exports will help our third quarter GDP numbers, and bolster further and economy that’s been trying to find its groove.

I’ve been saying since I began this blog last year that through the storm we must keep our eyes on the future.  We have been through much worse economic conditions, and that our economy will stabilize as it always has.  The boom days of the 80′s can’t last forever, but they will roll around again.

I feel that if we continue our investment in alternative energy sources, new technologies, industries, and business will open up for our country…which we can then export all around the globe to economies that struggle with similar issues… if we stay the course.

Read more on our trade gap results are Reuters:

http://www.reuters.com/article/businessNews/idUSN1248028220080812?feedType=RSS&feedName=businessNews

Unexpected positive economic news from the housing market.

Cisco Systems CEO, John Chambers announced Cisco’s quarterly results, which beat Wall Street’s expectations.  He went on to say he had strong confidence in his companies ability to meet projected profits for the year, and that our current economic conditions may last for two more quarters.  Positive economic news and positive economic outlook from industry leaders is what we need right now… Read more at Reuters…

http://www.reuters.com/article/businessNews/idUSWNAB510120080805?feedType=RSS&feedName=businessNews

I called it in July…and today it was announced… It’s simple economics… less demand, prices drop. I simply hope our country does not abandon its search for alternatives, or else we’ll find ourselves right back in the same boat, sooner than later…

http://www.reuters.com/article/businessNews/idUST14048520080804?feedType=RSS&feedName=businessNews