Economists downplay recovery

caroline baum

Second-quarter corporate earnings were better than expected in the US but many economists focused on the fact that profits were not so great

Failure sells. "Quagmire in Iraq" grabs the reader"s attention quicker than the headline, "Iraq Reconstruction Takes Two Steps Forward, One Step Back." An article on the latest obstacle to achieving strong US growth is sexier than a story documenting the slow, steady broadening improvement in economic activity following an extended post-bubble hangover. Second-quarter corporate earnings came in better than expected, but many economists chose to exclude the best-performing sectors (energy and financials) and conclude profits were not so great. Why is it some people in prominent positions...