Already Anemic Growth Forecasts Cut Down Further

Why is our recovery so much worse than for other countries? It can't simply be that there is a slow recovery after financial crises since that would imply a slow recovery every place. From CNBC:

Two months ago, Goldman Sachs projected that the economy would grow at a 4 percent annual rate in the quarter ending in June. The company now expects the government to report no more than 2 percent growth when data for the second quarter is released in a few weeks.

Macroeconomic Advisers, a research firm, projected 3.5 percent growth back in April and is now down to just 2.1 percent for this quarter.

Both these firms, well respected in their analysis, have cut their forecasts for the second half of the year as well. Then this week, the Federal Reserve downgraded its projections for the full year, to under 3 percent growth. It started the year with guidance as high as 3.9 percent.

Two years into the official recovery, the economy is still behaving like a plane taxiing indefinitely on the runway. Few economists are predicting an out-and-out return to recession, but the risk has increased, with the health of the American economy depending in part on what is really “transitory.” . . .

Obama says: "But we can't simply cut our way to prosperity." More accurately, he should say: "We can't simply spend our way to prosperity."

A Rasmussen Survey shows low confidence ratings among consumers and investors.

At 72.5, the Consumer Index is down five and a half points from a week ago, 11 and a half points from a month ago and down 10 points from three months ago.
Twenty-seven percent of consumers rate their personal finances as good or excellent, while and equal number (27%) rate them as poor.
The Rasmussen Investor Index, which measures the economic confidence of investors on a daily basis, rose four points on Sunday from its two-year low to 74.9. Investor confidence is down nine points from a week ago and down 17 points from a month ago and three months ago.
Forty-three percent (43%) of investors say their personal finances are in good or excellent shape. Just 10% of investors rate their personal finances as poor.
Overall confidence in housing values among homeowners has plummeted as well. Just 45% now say their home is worth more than what they currently owe on their mortgage. That’s the lowest level measured in more than two years of regular tracking. Prior to the latest survey, this finding had ranged from a low of 49% to a high of 61% since late 2008. . . . .

Another Rasmussen Survey shows that 46 percent of Americans think that Obama is doing a poor job on the economy.

The latest Rasmussen Reports national telephone survey of Likely Voters shows that 34% rate the president’s handling of economic issues as good or excellent. Forty-six percent (46%) say Obama is doing a poor job in that area. (To see survey question wording, click here.)
Poor ratings for the president’s handling of the economy are up seven points from last week, but the latest finding is more consistent with his job ratings on the economy over the past year. The president’s highest poor rating of 50% was last measured in October 2010. His positive marks on the economy fell to 31% in mid-March, the lowest point since he took office. . . .
An overwhelming majority of Political Class voters give the president positive ratings for his handling of both the economy and national security. Most Mainstream voters (56%) think the president is doing a poor job on the economy but are more narrowly divided when it comes to his national security performance. . . .

Finally, here is a survey showing that only 26% think that the country is heading in the right direction.