Fed says economy not collapsing

Hold the depression - things aren't that bad. The Federal Reserve's Beige Book, which is a compendium of anecdotes and stats from companies and banks around the nation, reports that the economy continued to expand over the past eight weeks. From MarketWatch:

What might surprise some people is how many positive things the Fed's staff managed to say about the economy:

• "Economic activity generally continued to expand;"

• "Labor market conditions continued to improve gradually;"

• "Consumer spending was generally described as steady to up modestly;"

• "Activity in non-financial service sectors continued to strengthen;" and

• "Manufacturing activity was reported as continuing to increase."

Here's what the Fed said about the 12th district, which covers California:

Twelfth District economic activity continued to expand at a moderate pace during the reporting period of late April through the end of May. Price increases for final goods and services remained limited, and upward pressures on wages were subdued on balance. Sales of retail items rose further, while demand for business and consumer services was mixed. District manufacturing activity also was mixed but appeared to expand overall. Agricultural producers reported strong sales, and extraction activity rose for providers of natural resources used for energy production. Activity in District housing markets remained lackluster, while demand for commercial real estate showed signs of improvement. Contacts from financial institutions reported further increases in loan demand.