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JP Morgan Cuts Q2 GDP Forecast
Once again Zero Hedge is just a week or so ahead of the "experts." A week ago, in a post titled "April Vehicle Assembly Rate Collapses, May Industrial Production Estimates To Be Cut" we concluded "Expect to see drastic downward cuts to May Industrial Production and next, to Q2 GDP." Enter JPMorgan's Michael Feroli with "Motor vehicle sector to drag on Q2 growth." Full text: "We are revising down our outlook for the annual growth rate of real GDP in Q2 from 3.0% to 2.5%. The main factor behind our revision is weaker output of the motor vehicle sector. Based on industry data we project that real output in this sector will decline at around a 20% annual rate, which would subtract 0.5%-point from GDP growth. From an expenditure category perspective, we see most of this weaker output making itself felt in a softer pace of inventory accumulation (with some offset though weaker imports). A portion of this shortfall reflects supply chain disruptions associated with the Tohoku earthquake. Anticipating a fading of those disruptions, auto production schedules look for a rebound in output in the third quarter, which, along with somewhat lower gasoline prices, supports the case for an acceleration in growth next quarter to 3%. The change to our second quarter growth forecast is modest enough not to have a significant impact on our projections for labor markets or inflation. We continue to anticipate a first Fed rate hike in 13 Q1." Next up: Goldman revising their Q2-4 GDP "hockeystick" to be more reminiscent of a "baseball bat."
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Guess it's my turn: GeeeDeeeePeeee Bitchezzzz!
ZH, the best research now. Perhaps a tendency to be a bit bearish, but a lot more accurate than the street chearleaders.
I believe immediate hepl is needed for our hard working UAW brothers. I propose we print $1 Billion and give it to the UAW general fund. This will save dozens of good union jobs.
Only a billion?
And what about creating new jobs? Better add about 50 billion onto that just to be safe.
Bring on the double dip!
Keynesian policy is absolute rubbish. There is no recovery, nada.
How long until JPM lowers its forecast to 2% and 1.5% next? 3 weeks?
Click below to see a visual graph of Bankster's dirty needs arranged according to Abraham Maslow's hierarchy of needs: http://thesilvergoldhedge.blogspot.com/2011/05/banksters-dirty-hierarchy...
Dr. Paul Krugman,
We anxiously await release of your Nobel Laureate quality treatise 'In Order To Pay Down The National Debt, We Should Print The Equivalent Amount of Dollars & Distribute Them To Treasury Note Holders.'
I am looking forward to reading this dissertation.
bit off topic but anyone watch the HBO movie TBTF yet?
Fucking disgusting, made Paulson and the Bernank look like knights in shining armor.
More intraday margin rate increases due to "unprecedented volatility" from IB coming across the wire.
These guys are almost as timely as S&P and Moody's.
Sell the afternoon equity pop?
http://deadcatbouncing.blogspot.com/
Market could care less. GDP doesn't matter, jobs don't matter, housing doesn't matter, unless it's a positive surprise. Otherwise, all that matters is the amount of free Benny Bux circulating on Wall St.
Actually I lied. The Euro matters. Euro up, stocks down. And vice versa. Then European stocks go up or down based on what US stocks did, and it's like an endless feedback loop higher.
PPT straining to keep the DOW green, think they need some more Benniebux Viagra.
Don't worry we will close green come hell or high water.
Gold definitely will close well green. As far as the fake stock markets, who cares.
JPM cuts GDP SWAG.
IOW, JPM joins other PDs/TBTF begging for more easy mo' from Bennie po-po'.
Easy Bernankle/Jeetner money is the QEueeeesiest!
DAMN and just when they had all established such rosy outlooks!
radioactive econometrics + BiChFlation = oops!
Just another tricky (+$100M) day for JPM.
SodaStream will save us from our woes. It's the modern day equivalent of discovery and mass production of the internal combustion engine, bitchez:
05-24 14:47: SodaStream moves up following positive mention on CNBC
We are all saved, Jim "creamer" Cramer supports the wealth effect by spinning the wheel of fortune one more time.
05-24 14:49: Sodastream (SODA) spikes 2.58% higher following coverage by CNBC's Jim CramerBetter get the SEC on this. We need an investgation, asap!
Dammit. I like my little sodastream fizzy water maker. It's very convenient and economical. I guess I'd better hoard supplies for it if Cramer has given it Il bacio della morte.
3 years of ummmmmm....... next quarter.
Anyone check out the lower right hand corner, where the Morgue is projecting the U.S. debt at $1.1T in 2012?
So they're banking (no pun intended) on the do nothings to douse $500B. Did I miss an election?
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