***Galapagos Islands***

[OMD]

Looks like SI may be down for quite awhile. Some old messages were disappearing from my Inbox and Outbox yesterday afternoon, and then the whole thing went down. Bob's update on Ihub overnight didn't sound encouraging.

Economic news this morning wasn't too bad.... Slow but steady recovery seems to be continuing:


http://biz.yahoo.com/rb/040325/economy_4.html


Economy Grew at 4.1 Pct Rate in Quarter
Thursday March 25, 10:03 am ET

WASHINGTON (Reuters) - New claims for jobless benefits rose slightly last week and the economy slowed in the final three months of 2003, the government said in separate reports on Thursday.

The Commerce Department said gross domestic product -- which measures the output of goods and services produced in the United States -- rose at a 4.1 percent annual rate in the fourth quarter, down from the blistering 8.2 percent annual rate in the prior quarter. The figure was the same as the agency's second estimate a month ago and in line with Wall Street economists' estimates.

The Labor Department in a separate report said jobless claims rose by 1,000 to 339,000 in the week ended March 20. That was slightly above economists' projections.

"Jobless claims have reached an even keel and the revised GDP numbers saw an increase in business spending, which suggests we should see more job creation in the months ahead, but still below the pace needed for a robust economic recovery," said Jes Black, a currency strategist with MG Financial in New York.

In the Commerce Department report, after-tax corporate profits rose 7.6 percent in the fourth quarter, a slowdown from the 10.1 percent gain in the third quarter. For 2003, the department said after-tax profits were up a hefty 19.2 percent. That was down, however, from 2002's 24.6 percent increase in profits. It was the first time since 1996 and 1997 U.S. firms have seen back-to-back double-digit annual profits, the department said.

Part of the profit slowdown last year can be traced to larger corporate tax bills. Tax liabilities increased 15.3 percent in 2003, after a drop of 3.0 percent in 2002.

Measures of inflation in the report remained tame, even though they were revised somewhat higher. The price index for personal spending - closely watched by the Federal Reserve - rose at a 1.0 percent annual rate, revised from a 0.7 percent increase. Excluding food and energy costs, the price index was up at a 1.2 percent annual rate, above the 0.7 percent pace in the preliminary report.

While the fourth-quarter growth estimate was the same as in the preliminary report, some of the components were revised slightly.

Consumer spending was revised up, to a 3.2 percent rate from the previously reported 2.7 percent pace. Business investment was also revised upward, to a 10.9 percent advance from the previously reported 9.6 percent rate.

Government spending, however, was revised downward, falling at 0.1 percent rate from a 0.8 percent increase in the preliminary report. Inventory building was also revised to a slower pace.