New GDP Numbers Show Slowed Rate Of Growth

According to statistics released Friday by the U.S. Department of Commerce, the nation’s Gross Domestic Product (GDP) grew at a rate of 3.2% during the first quarter of this year. Yet while some are celebrating the news, the figure represents a drop-off since the last quarter of 2009, when real GDP increased 5.6%. Still, President Barack Obama struck an upbeat tone when he addressed reporters in the White House Rose Garden this morning.

“What this number means is that our economy, as a whole, is in a much better place than it was one year ago...We’re heading in the right direction, we’re moving forward. Our economy is stronger, that economic heartbeat is stronger,” he said, flanked by a pair of CEO’s of clean energy companies who have been able to increase domestic payroll thanks to Recovery Act awards.

In reality, however, the statistics show the country’s economy remains in less-than great shape. During the early months of 2010 businesses built up inventories at a slower rate than the previous quarter, national exports decelerated and housing sales remained sluggish. In addition, prices of goods increased slightly while personal real income levels flat lined. Although consumer spending increased, some experts attribute this uptick to the fact that many Americans who filed taxes early capitalized on their returns.

Based on today’s numbers, the economic forecast for the future isn’t too bright, said Peter Morici, an economist and professor at the University of Maryland’s Robert Smith School of Business.

“Although the inventory rebuild has begun, the pace is slow reflecting tepid sustainable demand for U.S. goods and services...Looking ahead, data are not encouraging. After such a long and damaging recession, we should expect several quarters of 5 percent growth but poor and mistargeted economic policies will force Americans to settle for less.”

House Republican Laments Timing Behind Release Of CMS Report

A report authored by the Centers for Medicare and Medicaid Services (CMS) showing that healthcare costs will increase under a newly passed reform law should have been released before the law was passed, said Rep. Bill Cassidy (R-La.) during a phone interview with Talk Radio News Service on Wednesday.

"I think it's a shame that the report was released after the vote; clearly it was important," Cassidy said. "It was, if you will, a damning indictment [of the legislation]."

The 38-page analysis conducted by the chief actuary at CMS, Rick Foster, concludes that healthcare spending will represent 21% of the country's Gross Domestic Product (GDP) by 2019. According to the report, that figure equals a 0.2% increase -- or $311 billion -- over the level that would be reached without reform in place.

During the nearly year-long debate over the legislation, the President frequently assured the public that his plan would bend the nation's healthcare cost curve down. But now, said Cassidy, Americans may start to lose faith in the administration's ability to be forthright.

"[The administration's] central premise was that they were going to lower costs," he said. "Now, integrity and faith in government are key things, trust in government is a key thing. If we're not gonna be able to trust them on this...what does that mean about other big policy decisions?"

Click here to listen to more of the Congressman's interview.

White House Counting On Bipartisan Agreement Over Wall Street Reform

Minutes after President Barack Obama gave a speech calling for swift passage of financial regulatory reform, a top White House economist told reporters he is extremely confident that Republicans will back the bill being considered in the Senate.

"There is every indication that we can [achieve a bipartisan bill]," said Council of Economic Advisers member Austan Goolsbee. "Fundamentally, I'm very optimistic that we're gonna have a clean bill that is supported in a bipartisan way by a lot of people."

Goolsbee said the message of the President's speech today was simple: Firms on Wall Street must help pass reform, not obstruct it.

"The lobbying expenses that have been incurred by opponents [of reform] who are trying to preserve the status quo that got us here is not acceptable."

Senate Republicans Must Oppose Financial Reform Bill, Says House GOP’er

In an interview with Talk Radio News Service on Wednesday, Rep. Steve Scalise (R-La.) said voting for a financial regulatory reform bill making its way through the Senate this week is akin to voting for a continuous bailout for big banks on Wall Street.

“The bills by Barney Frank (D-Mass.) and Chris Dodd (D-Conn.) create a permanent bailout fund for banks, and [are] paid for by taxing a lot of the financial firms who didn’t have anything to do with creating the mess on Wall Street,” Scalise said.

Scalise, who voted against a similar bill written by Frank that was passed by the House last year, said Republicans should stand in firm opposition to the Senate bill because of its failure to target the U.S. Securities and Exchange Commission (SEC), as well as housing lenders Fannie Mae and Freddie Mac.

“The SEC did not do their job in preventing this first financial collapse. They allowed these companies to get too big to fail,” Scalise said. “There’s no reform in this bill for Fannie and Freddie...their friends, like Barney Frank, are protecting them.”

Click here to listen to audio excerpts from Rep. Scalise’s interview with Talk Radio News Service.

Treasury Should Mandate Mortgage Modifications, Says TARP Watchdog

The man in charge of monitoring the Troubled Assets Relief Program (TARP) told members of the Senate Finance Committee Tuesday that the Obama administration should consider forcing lenders to reduce payments for homeowners behind on their mortgages.

Neil Barofsky, the Special Inspector General of TARP, a $700 billion financial rescue program designed to help cushion the blow of the recent housing collapse, said that foreclosures have increased since the current administration announced measures last year to straighten out the housing market.

According to Barofsky, the Treasury Department's Home Affordable Modification Program (HAMP), a voluntary $75 billion foreclosure-prevention policy which gives payments to lenders who agree to reduce the principal on homeowners' loans, “has made very little progress in stemming this onslaught."

In a report put out Tuesday morning, Barofsky wrote that the Treasury Department could do more for borrowers by making the program mandatory.

"Giving servicers the discretion to implement principal reduction introduces a questionable inconsistency into the HAMP program and stands in stark contrast to the mandatory nature of the other significant mortgage modification triggers."