ECONOMIC STIMULUS ACT OF 2008: Is it working? 4

Although distribution of tax rebates (estimated at $ 106.7 billion) only began in the 2nd quarter of 2008, 1st quarter statistics from the US Bureau of Economic Analysis showed improvements in the US economy.

Gross Domestic Product grew 1.0% in the 1st quarter of 2008 versus only 0.6% in the 4th quarter of 2007. Profits of financial corporations increased by $ 14. billion against a $74.4 billion decrease in the preceding quarter –indicating some recovery from the subprime crisis. Overall corporate profits decreased by only $5.2 billion in the 1st quarter of 2008 versus a $ 52.9 billion decrease in the 4th quarter of 2007.

What about Fannie Mae & Freddie Mac? (in the next posts) 

image from Microsoft Clipart, graphics by Ren Garcia