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Big Miss To Second Q4 GDP Read: Comes At 2.8% On Expectations Of 3.3%, Previous Estimate Of 3.2%
As we had been expecting, Q4 data once again continues to take downward revisions. Second revision of Q4 GDP prints at 2.8%, widely missing of 3.3% widely, compared to a 3.2% reading previously. US Personal Consumption came at 4.1% on expectation of 4.2% (Prev. 4.4%). Core PCE was 0.5%, on expectation of 0.4%. The attempt at getting the consumer to releverage, at least according to the BEA, is working: personal outlays increased from $10,736.3 to $10,883.2 resulting in a decline to savings of $55 billion. And still the economy refuses to either generate jobs to keep up with the rate of population growth, or to grow at the required rate of 4-5% nearly 2 years following the "end" of a recession. Make room for QE3.
Comparison of 1st and 2nd Q4 GDP revisions - the biggest contributors to the decline were Personal Consumption Expenditures which declined from 3.04% to 2.88%, and Imports which dropped from 2.4% to 2.17%.
From the release:
Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- increased at an annual rate of 2.8 percent in the fourth quarter of 2010, (that is, from the third quarter to the fourth quarter), according to the "second" estimate released by the Bureau of Economic Analysis. In the third quarter, real GDP increased 2.6 percent.
The GDP estimates released today are based on more complete source data than were available for the "advance" estimate issued last month. In the advance estimate, the increase in real GDP was 3.2 percent (see "Revisions" on page 3).
The increase in real GDP in the fourth quarter primarily reflected positive contributions from personal consumption expenditures (PCE), exports, and nonresidential fixed investment that were partly offset by negative contributions from private inventory investment and state and local government spending. Imports, which are a subtraction in the calculation of GDP, decreased.
The small fourth-quarter acceleration in real GDP primarily reflected a sharp downturn in imports, an acceleration in PCE, an upturn in residential fixed investment, and an acceleration in exports that were mostly offset by downturns in private inventory investment and in federal government spending, a deceleration in nonresidential fixed investment, and a downturn in state and local government spending.
And full year data:
Real GDP increased 2.8 percent in 2010 (that is, from the 2009 annual level to the 2010 annual level), in contrast to a decrease of 2.6 percent in 2009.
The increase in real GDP in 2010 primarily reflected positive contributions from private inventory investment, exports, PCE, nonresidential fixed investment, and federal government spending. Imports, which are a subtraction in the calculation of GDP, increased.
The upturn in real GDP primarily reflected upturns in exports, in nonresidential fixed investment, in PCE, and in private inventory investment and a smaller decrease in residential fixed investment that were partly offset by an upturn in imports.
The price index for gross domestic purchases increased 1.3 percent in 2010, in contrast to a decrease of 0.2 percent in 2009.
Current-dollar GDP increased 3.8 percent, or $538.8 billion, in 2010. In contrast, current-dollar GDP decreased 1.7 percent, or $250.1 billion, in 2009.
During 2010 (that is, measured from the fourth quarter of 2009 to the fourth quarter of 2010), real GDP increased 2.7 percent. Real GDP increased 0.2 percent during 2009. The price index for gross domestic purchases increased 1.2 percent during 2010, compared with an increase of 0.5 percent during 2009.
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Delighted to hear it! Now can we get more sugar, Ben?
Cocaine. It's the new sugar;-)
Fat Freddie got burned again! Doesn't even make the coffee sweet. - Freewheelin' Franklin
"Pssst - hey Heeepy... I got what you want..."
Crack my ass up! Love the Fabulous Furry Freak Bros. - especially Fat Freddy's Cat - Classic.
+420 for the Fabulous Furry Freak Brothers!
Smackdown bitchez!
Plus earthquakage in Veracruz Mx 5.6...but way deep (132km). Wouldn't expect much damage.
Didn't Rosie predict negative Q4/2010 GDP just in June/July 2010. And "almost certain" -250k NFPs and -2% annualized GDP in Q1/2011. It is amazing how all these perma bear predictions are conveniently forgotten and we just feast on failed permabull non-sense.
Don't think rosie had a $600 Billion POMO priced in. Unemployment would be over 20% if so many people haven't been moved to NILF. Look at employment to population ratio if you want to see the real picture. It is at 26 yr lows and continuing to degrade. We simply have far more people than jobs. Food stamps (SNAP) is another great indicator at a record 43.59 million.
If QE/POMO/money printing had any bearing on GDP then Japan would have had a series of positive nominal GDP prints in the mid and late 90s. Unfortunately that wasn't the case.
Japan showed us over a decade ago that money printing is a zero sum game. It has zero net effect. It's left pocket right pocket. Rosie can't use that as an excuse for his missed forecasts.
The great thing in trading is that there are no excuses. The market grades you, relentlessly. Every day. You can't cry "Bbbbbut the Fed manipulates!!! I would have been right if it wasn't for the evil Barnank!!!!". Either you're on the right side of the market or your on the wrong side of the market.
"the market" I guess you don't buy anything other than stocks then? STFU moron
I trade all liquid commodity and FX markets. What are you trading? Baseball cards?
Yeah right, because Bernanke DEFINITELY doesn't manipulate any markets, right?
And the Japanese experiment is 100% matching the American.
And the cheque is in the mail.
japan is still the most expensive place on the planet even after 10y on/off of deflation so who's to say it didn't achieve something!
Our Japan will be called Manhatten
Japan has not collapsed due to it's printing money....it is a faux stick save. Huge portion of US GDP is government spending. The only way that is accomplished is for the US to issue debt. The only way that much debt can be successfully issued at low rates is for the Fed to buy it. This is a loosing game...the US is merely behind Japan in the percentage of debt to GDP...the size of our debt (and liabilities) is unrivaled. The key is no one wants to end the party and be the one stuck with the bill.
If you create debt, it always affects GDP. It's overall effect may be negated by shadow banking losses, but that means the GDP loss would have been even greater. This is why you see zero growth in Japan and why Ben can claim near zero inflation.
Of course, this still doesn't bail Rosie out.
UE is over 20%
I don't believe more than one in ten of the commenters here are investors at all, bull or bear. The reason is that I can't imagine that any investor could be so gleefully pessimistic after missing the historic run-up of the last three months and three years. If I had been on the sidelines watching the market, I'd be disgusted with myself.
Interesting.
So you mean I can't be pessimistic and still have enjoyed the run up? Or are you saying that it's impossible that I got out in late 2007 or early 2008 and never experienced the crushing drop in 08 and early 09, thus I am still way ahead even if I stayed out of the market? Or that I have been heavily invested in PMs since 2003-2006 and are way ahead of the "smart" money.
The world is so constricted when viewed from our narrow world view.
Yeah, cause the PM run sure hasn't been a lucrative alternative to the markets. </sarcasm>
With added liquidity provided by the Fed the Dow may hit 15000 and S&P to 1500. But that doesn't mean I want to be part of it. If you fool me once (2007/2008) shame on you. Fool me twice, shame on me:-)
Yes, I am specifically saying that! It is impossible to watch your account balance rising steadily for three years and not be happy about it. Even if you punched out at the peak and have been in cash since, you'd still be miserable from thinking of what you missed. It's just human nature.
Your definition of happiness reeks of depravity.
If, while flying your single-engine Cessna over the wheatfields of south Dakota,
you toss a blae full of newspapers out the door,
and then, upon reconsideration,
yu choose to jump after them,
you are very likely to observe how fast your paper is "going up".
but if you happen to look down at all, you may retain your pessimism, all the same ....
2 of my 3 choices involved a situation where the person either remained in the market but still was pessimistic, thus they have watched their account balance go up or they were invested in PMs, meaning they have watched their account balance go up even faster.
But of course you choose to select the only one that "proves" you're correct.....from your point of view. How convenient. I see you comment here on ZH every few weeks, then disappear into the ether. Spare us please and just remain on the Yahoo boards.
Depends on what that account balance consists of and the debt your household carries.
I live near a casino, never gone there to gamble, and 'what I've missed' has never crossed my mind...
IMO the stress you deal with must be 'miserable'.
That's the market, not the economy or the country. And you don't live in the market. Plenty here on ZH accurately predicted the run based on wild Fed loose money. And plenty also accurately see the tell on the economy and the country.
Please explain to us again the theory of how a 100% debt monetization rate is a healthy part of any vibrant, organic, sustainable economic system.
'Historic run up'? Better Windex those rose colored glasses, stocks are only up 5% since 1999, bull dancer! Wow youre easily impressed....and its only cost us about $25 trillion to get that 5% spectacularity in stocks!
well, more like -15% due to the loss of purchasing power caused by the 20% inflation during the same period.
True, I was just giving the best case scenario wiggle room. 'Stocks', lol. BTW for all the stock gazers you of course had to be in the exact RIGHT stocks for any gain at all as many have totaly collapsed.
Let me clear something up for you.
TheBernank = "investors"
I hope this helps
The point IMO is not about being pessimistic, but allowing the pessimism to allow ones trading decisions. I am about as pessimistic about the economy and western civilization as one could possibly be. And I am long equities to the hilt.
People around here would do well if they managed to disassociate their emotions and gut feeling from their trading decisions. At least that's a lesson I have learned a long time ago. Learned the painful way.
"If I had been on the sidelines watching the market, I'd be disgusted with myself."
Basic self-respect, integrity and morals dictates that I earn my living in a honest and productive manner, gambling does not fall into that category....
Better to be Perma-Realist without pre-conceived perma-BullCrap. We here at ZH prefer to watch what's going on and interpret and predict where it's headed. And we're concerned with the effect it all has on America. Wearing rose colored glasses or Rosie-colored ones is the surest way to let it all slip away
On that I agree 100%. There are quite a few on ZH that misunderstand a comment as being bull or bear when it is really about the welfair of the land your ass occupies.
Concerned with America? Don't make me laugh. Most everyone here is openly cheering for armageddon, and even claiming to be preparing for it.
Rcognizing what is happening is far from cheering, and since none of us can control how much satan is printing what else can we do but prepare for the inevitable?
+ Hard White Wheat. Is it better to try to be prepared for what scares the shit out of you, or to pretend the possibility doesn't exist?
I got news for all of you people out there who like to make fun of "Doomers": Once you have acknowledged to yourself what it is you are "preparing" for, you no longer take for granted all the niceities and luxuries of life. Shedding one's normalcy bias is probably the best thing you can do to stop taking things for granted. I would say that most "Doomers" enjoy every minute of every day more than most, because we don't blindly assume it's going to last forever. Not to mention that having a supply of food, and a stash of PM just adds a little sense of security to a world that seems more uncertain than ever. I also find it humorous how what is basically a normal rural lifestyle is so quickly ridiculed by urbanites. The biggest difference between red and blue states has nothing to do with politics.
CC, I enjoy reading your posts. I live in a "blue state", my nearest neighbour is 2 miles away, (that will change somewhat in the summer), getting 10" of snow today, long road to plow out.
Many blue states have very "large" (relativity speaking) rural, farm populations... there is more "meaning" to "the difference between red and blue states", than you have implied. I was raised in Vermont (hmm.... not sure what "color" that state is...lol) on a dairy farm (old fashion French Canadian and Yankee family).... I know what a work ethic is, I know how to make money and save it, I know about compassion and the importance of helping people out to "the best of your ability, you don't spend money you don't have".. and I have no time for big corporations or big government, but I also respect that we have to have a rule of laws that are uniformly enforced and "the commons" have to be protected (you don't eat next year's seed)..... I have never drawn on social services, I have paid my way (and my "dues"), I received a wonderful eduction thanks to government subsides, the government's investment in my education over my life has paid for it's self many, many times over via my increased income & business taxes paid and jobs my businesses created.
My point is that TPTB have almost succeeded in marginalizing the "voices of reason and balance".... (think of FOX fair and balanced <snark>), the media has encouraged (by way of example) people to use labels, red state/blue state, liberal/conserverative etc...(many times, in an inappropriate manner) without giving any thought to the true meaning of the labels. For example, the term "liberal" is often used to denigrate anyone who does not share your point of view/opinion....
Human communication are inherently flawed, we should all try to be precise in the words and language we use so our intent is clear.... if we all did this we might find out that there are very few "substaintal differences" between "red and blue" states, "liberal/conservative"......... but then were would TPTB find themselves?
Hardcleareye,
I don't disagree with anything you say. I actually live in a "blue" state, but one whose blue demo is made up of three populous counties surrounded by dozens of red rural ones. I really don't buy into left vs. right in terms of liberal vs. conservative or Dem vs. Rep., but would say that if we were talking leftist=statist vs. right = libertarian then perhaps we have a discussion.
My comment was more intended to point out the real everyday differences in lifestyle between say, a person who lives in San Francisco or New York compared to Ashley North Dakota, or Mekoteka Iowa. Seldom if ever do you see country people telling RnR how he's destined to starve to death if the AIDS he catches from being ass raped by escaped convicts doesn't get him first. But day in and day out, the urbanite trolls will disparage rural people with calls of, Doomer, Redneck, Trailertrash,,,,,, the list goes on. I am a hard working parent who loves and nurtures my children, and bust my ass trying to instill in them a sense of honesty and value. That's no different than any "liberal" anywhere. But if I seem to flame on these people, it is a response to being constantly derided by pointy heads who think they are superior, but for an unstated reason. Some of the comments by RnR would be absoFUCKINGlutely denounced as racist if he wasn't talking about a predominately white group of people.
My point was that country people just tend to be prepared to weather storms, and I have yet to figure out the motive behind the disdain of others. Is it jealousy? Certainly the academic elite around here would say no. Is it scorn? Am I stupid or unevolved because I use my spare time to raise food and cut firewood? It it because I seem smug in my confidence that I am not overly afraid of economic collapse? Does that cause resentment because the average city person isn't as self reliant as the average country person? Maybe it's because RnR is afraid of being swallowed by the Golden Horde if we collapse, and I'm not especially worried about it.
Whatever the answer, there ARE two Americas. Red/Blue, Urban/Rural, I don't care what you call it, but they are there. And seperate as Hell.
I disagree with your statement. Yes there are some trolls that do cheer for Armageddon, they get taken to task on ZH.
I am realistic and understand that the "probability" of a global financial "melt down" is increasing. If that occurs, that is NOT the end of the world... we will adapt. We as humans have survived calamities much worse than a "financial meltdown", peak oil and climate change. But make no doubt that, "adaption process" will be very painful.
The 'wild bull run' crowd makes me laugh...yea theyve pumped stocks but only 5% since 1999 levels. And theyve only done that thru placing trillions in new debt, frankly I dont see what the big deal is at all.
Even with phony data it still stinks
"Big Miss To Second Q4 GDP" for God's sake, my dart board is more accuracy than these so called economic 'experts' and their data.
You want real economic data,,,get out and drive up and down residential alley's, behind stores, bars, rest. etc. Look at what is being thrown away, look at the cardboard. Go stroll thru Salvation Army, St Vincent dePaul, etc. There is your data, and you don't need darts, or economic 'experts' to interpret it.
Did they blame it on the snow?
Snow didn't really start until Q1 2011....that will be the excuse for that data set.
Blame it on the Henny - used to warm up after a cold winder
That depends, if they do will you believe it?
Time for the whoremongers to start posturing for QE3. The banksters need guarantees of big bonuses in 2011. Hookers in the Hamptons don't come cheap in these days of soaring food and energy costs.
Ponzi economy!
Are the Hookers in the Hamptons considered food or energy? :>)
Hookers are food. Cocaine is the energy source.
Seriously, this is so goddam pathetic that one has to wonder if the Fed Chairsatan really is trying to destroy the global system in a race to push the RESET button. More liquidity promotes more speculation. Prices are surging as it is. Imagine if the unrest in the Middle East spreads and topples more leaders. Who will lead those countries? Having the Mubaraks and Qaddafis etc. put out of power may make the people feel good, but someone has to step up in their places and run these countries. Things might get much worse until a transition of power is made and competent leaders emerge.
LOL you said competent leaders
It won't be too funny if chaos spreads to Saudi Arabia. Maybe you noticed in the news that Saudi Arabi is reportedly offering some $37 Billion in handouts to pacify its citizens.
http://news.yahoo.com/s/nm/20110223/wl_nm/us_saudi_king
If the House of Saud falls and oil production in Saudi Arabi is impacted, we will all be afraid.
If you aren't afraid and taking some time and resources getting prepared then you haev your head in ther sand. The unhappy masses aren't going to just "go away" and throwing a little money at them isn't going to solve long term problems either
Who are you talking to? Those were the points that I was making. Unless capable leaders emerge to replace the Mubaraks etc., things will get worse. Don't equate the word "competent" with "honest" or "decent". Somebody has to run Egypt. Somebody has to be the head of state there. Somebody has to make the infrastructure function. As bad a guy as Mubarak may have been, Egypt still existed as a nation. If someone with the capability of running a nation doesn't take his place ASAP, Egypt will function worse. That was my whole point.
JLL enjoyed reading your post. Concur with your insight, however the "probability" of anyone making the infrastructure function in Egypt is extremely small. This will continue to escalate as the quality of life for Egyptians degrades, to many people not enough resources.
'Competent leaders'...yowza. Hell its a 'democracy', where you have the freedom to vote for your choice of pre-selected puppet dictator!
The point of my post is that exchanging Mubarak for someone else may not make Egypt's problems go away. It may make them worse. Same goes for Tunisia and Libya and Bahrain and wherever else. If you don't like the word "competent", feel free to insert another word. Those nations each need somebody who can run the country. Unlike America, citizens of these nations are tough when it comes to demanding change. Unfortunately, running off their leaders may not make their lives better. Those nations have real problems, and unless capable leaders emerge, things may get worse.
If you understand the difference in mental state when you have hope for something to change for better and being hopeless then you would understand them. Except that all your points are valid.
I never claimed to understand them. I can only empathize with them, because I can do nothing for them.
I never claimed to understand them. I can only empathize with them, because I can do nothing for them.
I never claimed to understand them. I can only empathize with them, because I can do nothing for them.
Did not intend to reply 3x. The screen froze up when I hit "Save".
New rule: runner-up is awarded the power. This was to be the scheme to determine who represents the average bloke in a post-WW2 world governance system. TPTB, who were a bit more benevolent then than now, intuitively knew that the proletariat would always choose incorrectly. There were however concerns that those aspiring for leadership would find a way to come in second place.
Fed's all over that one! It's part of what might be called "Stimulation"
See handing out free money is only half the story. Maybe less. So they figured out how to boost testosterone AND let it all trickle down. So Hookers and pimps in the Hamptons get a supply-side subsidy as part of QE. And don't think that hasn't boosted Coach's bottom line!
Print more money bitchez!
Expecting reports blaming weather and also reports suggesting just to ignore the figures. The latter kind has gained popularity recently as weather excuse has been on the table so long.
Market doesn't seem to care about bullshit data,,,,,
Yea, scared the shit out of the futures, didn't it?
snow
Hampton Hookers, what a visual!
Hampton Hookers sing this song doo dah, doo dah
Hampton Hookers sing this song doe, de do dah day
LMAO
you are gonna need a keyboard with an infinty button if'n you wanna keep bringing up QE
Well look at that avatar...
And the futures go up BTFD
But of course. Algos and HFT bots interpret a falling GDP w/QE...'nuf said.
QE3 is an interesting prop. With each round of new accommodation, the swing of the pendulum of (toward?) social chaos seems to become increasingly steep. Each round of easing buys less-and-less in the way of economic (social, political, etc) order. Of course, The Ben Bernank is 100% committed to his monetary ideology. He cannot be swayed. But events around the world, and at home, may make each new round of QE more difficult to defend. I am almost 50 years old. I cannot recall a time so thick with volatility.
But he told Ron Paul at a policy hearing last year that he is like Keynes and is willing to change his mind when the facts change right?
I suppose Civil unrest, 120 oil and 40.00 silver mean nothing.
I turned 50 last month. I can recall periods of similar volatility but the stench from the Capitol exceeds even Watergate, to my mind; and this is my first Depression.
In the long run (Mr. Keynes), it's your theory that's dead...
http://www.youtube.com/watch?v=d0nERTFo-Sk
So, is the NYSE going to declare Force majure/Technical Glitch and shut down too?
That...would be nuts. has it? Did it?
ORI
http://aadivaahan.wordpress.com/2011/02/21/through-a-lens-darkly/
NYSE? Im not sure WHAT the German markets will do!
Gut one! They will say, it's ze Euro next.
ORI
Okay. Explain this. The money supply is soaring and GDP is barely growing. Where's all that extra money going?
the money is going to the banks who need it to prop up their books b/c of all the bad mortgages and commercial real estate loans they can't get rid of...Ben is adopting Japan's strategy of saving zombie banks...
I believe the commissions on the tbill bought and then sold 5 minutes later to the Fed is the banks real money maker. A cool 10% to 15% for a few computer clicks (and on money they borrowed from the Fed to begin with- nice business they got).
But to answer the question " where is all the money going", someone correct me if I am wrong...but it is going to the Treasury so Timmy can keep the government and programs running.
I believe the number was 1 government worker for every 1,600 Americans in 1960 and now approximately 1 government worker for every 7 Americans. The money to run the government ain't coming via income or cap gains taxes.
Can someone find that data...I think it was on ZH a few weeks back actually. I don't want to be posting nonsense here.
On a related note how could Goldman come out yesterday saying cutting gov spending by 65 billion in 2011 would lead to a 1.5-2.0% DECLINE in 2011 GDP in Q2 and Q3?
Because all GDP growth has been from government spending.
Don't forget hedonics and imputations. Those are healthy growth areas, too.
Yet M2 is vertical and GDP is being revised downwards. The cognitive dissonance is getting very hard to hear over.
Money heaven - i.e. defaults
http://www.youtube.com/watch?v=COPlJwqaQm8
Its now a global economy that everyone so dearly wanted. Where is the money? Now, answer your question with a question. Would the fresh money stay in the U. S. were there seems little prospects and an unmigitated disaster of fiscal policies, high taxes, strangulating regulation and a complete and total misallocation of capital never mind a nuclear debt bomb, or would it move to places with a little more promise of return, Still gonna wait for that trickle down eh?
I for one opened a small just in case account in Brazil. Tons of natural resources that will weather the storm better than most as they have shit to sell, with an admitted less than perfect government being my only risk. Better hurry it will be illegal to open foreign bank accounts in 2013.
smart money or dumb money? There's a difference.
If you are looking in the rear view mirror or don't follow S.A. news, that is a great sounding idea.
However, I suggest a bit of homework. Like no man, Brazil is not an island.
Ive done mine. Thanks
even a crazy camel jockey, and 100 oil plus a weak GNP number, doesnt stop assholes from buying burritos at Chipotles and another pair of UGGS...(DECK) market just goes higher...
do you really think consumer consumption is what's keeping this market going?
If "buying burritos from Chipolte" is the "fuel" keeping this economy going then we're screwed
Yeah don't forget spending on Saudi oil, Chinese electronics (all Apple products), Korean flat screens, German cars and French wines. That boosts the economy and prevents US inflation at the same time
$9 rice burritos!
It is not a "market". It is an instrument of wealth transfer for the elite.
The Ben Bernanke = psychopath?
As the case for QE3 is solidified, the few remaining traders shorting into solid resistance levels capitulate. Retail investors re-enter the market, time for the parabolic end game....
I dont know any businesses around here hiring. Obama for two years now has made the business regulatory and cost structure unpredictable. All the businessmen I know truly hate Obama and are hunkered down. Not good.
BTFD....
What a bunch of Whoreshit these Fed #'s have become....
Whoops....looks like I insulted one of the Whores out there....
Bummer?? Bennie?? Timma?? You out there?? '>)
Obummer's Favorite:
How to lie with revisions...
Obama is just a sock puppet.
Citi to the rescue:
"The world is going to become richer and richer as developing economies play catch up over the coming years, according to Willem Buiter, chief economist at Citigroup."
as I have said: hopium to insanium in 3 easy QE steps...
Typo - he meant to say "his world"
Things are working out beautifully: keep the US economy cold and the Fed will stimulate forever. Which the rest of the world loves because we spend most of it on their oil, electronics, clothes and foreign cars (and drugs).
And they're happy to let us borrow our way into debt slavery so they can claim eminent domain and start carving up the US into new Chinese cantons. So they can retire here! It's a perfect plan.
Yeah I don't think the rest of the world is enjoying the inflation we are exporting - once it gets here on the same level other countries are seeing it's over
Should be proof QE isn't working, but sinc ethe stated goals are not the real goals of the program no reason the fed won't do more of something that doesn't work.
Our federal government has long ago ceased to function properly. All they can do now is print ever-cheaper dollars, argue over ideologies and collect their monthly stipends from the lobbyists.
They've done nothing to help create jobs in any real sense. The best hope for individuals is to plant a garden, save, buy PMs and guns, and disconnect from as many government schemes as possible.
I always encourage people to start their own businesses, which, in times like this, with no jobs available, at least keeps one busy and maybe pays some bills. Some people will actually prosper through hard work and avoidance of all things government-related.
Every man/woman for him/herself. Not a pretty picture. I hear the winters are mild in Northern Libya and Algeria, and the cost of living is pretty modest. Once the smoke clears over there, Northern Africa could become a serious economic powerhouse.
So I guess we can expect the Dow to jump a couple hundred points on that little gem.
Let the DOW do whatever, its irrelevant. Watch out for bond collapse and prices spiking, oils got nowhere to go up way up with another money tsunami flood.
Futher proof that wasting meaningless currency and debt issued by a meaningless institution is a big fat waste of fucking time. It's now more proof than ever that the fed is does more harm than good. End the fed.
REITs up like a mother fucker on this glorious news. I guess it's seriously bullish for commercial real estate.
Ignore the news and buy. News is no longer relevant. We have "printed" prosperity now!
I wonder what the real deflator really is. I have my doubts on US inflation data (heck all inflation data).
http://viewfromthewilds.blogspot.com/2011/01/is-global-economy-really-gr...
http://viewfromthewilds.blogspot.com/2011/02/inflation-global-perspectiv...
http://viewfromthewilds.blogspot.com/2011/02/china-exports-what-is-growt...
Somehow, the evidence seem to indicate inflation is much higher than official figures. That makes the GDP growth number a farce.
the economy did not grow - it shrunk.....gdp is a synthetic number made just for liars....inflation was much higher than reported and thus economic "growth" much smaller than reported.....in fact, the economy has been shrinking nonstop since 2000....
Tyler, "junkin's" just not doin it for me anymore. Can WE get a "flashing middle finger" for the old junk symbol? And a new, improved way to really let the good guys know WE appreciate them on ZH? Something like a big "smiley face with a flashing GOLD tooth"? Just askin, maybe get Banzai to help......
Typically the GDP pre-lim is the first 2 months of the quarter and an est of the 3rd. If this is then "the" GDp, the final one should be interesting! Maybe 2.6? Certainly not back to the 3.3 expected.
Second, there is no driving force to the economy except the Fed/Gov spending and some consumer/business production. Good luck.
So true, ex three years of 10% federal deficit spending and ZIRP, the numbers would all be negative.
Let's go back to GNP where we have to subtract US foreign payments on debt...
Oh, that is why we stopped using GNP...