Fed's Beige Book Shows Signs of Color

It just went beige all of a sudden

We’re all looking for that light at the end of the tunnel when it comes to America’s economy. Have things hit bottom yet? Is there truly nowhere to go but up? Or is martial law waiting in the wings? Will no fax cash advance and mortgage loan modification protect us from the rubber bullets and tear gas?

What does the Beige Book have to say? It’s the Federal Reserve’s anecdotal take on the economy from the viewpoint of its central banks in 12 U.S. districts. Carl Gutierrez reports for Forbes that Wall Street may just have reason to let loose a (cautious) grin.

A “troubled, but thawing” outlook

According to the report, the Fed’s banks saw activity that was “contracted” or simply “weak.” Yet five of the 12 reporting districts noticed a slowing pace of decline. Several districts even noted signs that activity in certain sectors was beginning to stabilize.

But don’t get too excited. The Fed set the bar - their expectations - quite low for their analysis. The prior report, which came out in early March, indicated an end of 2009 recovery from the subprime debacle. In that report, 10 of the 12 districts pointed out weakening conditions through February. ... click here to read the rest of the article titled "Fed's Beige Book Shows Signs of Color"