The initial GDP estimate for the first quarter of 2008 (based on data from October, November and December 2007) came in yesterday at a very low 0.6%.

That’s a big reduction from the 4.9% increase in the 3^rd quarter, and makes clear that the subprime and credit market problems that emerged beginning in August are reverberating through the broader economy.

Congress is responding. The House passed stimulus legislation on Tuesday by an overwhelming margin that would provide tax rebate checks to families of $1,200 per couple and $300 per child, as well as allowing businesses to write-off investments faster and banks to …

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