Shrinkage: US Economy Declined By -0.1% In Q4

Tyler Durden's picture




 

A stunner out of the BEA which just reported a Q4 GDP of -0.1% that was leaps and bounds below the 1.1% estimate, and a plunge from Q3's 3.1%. The factors: Private Inventories, Exports and Government Expenditures all of which contracted, by -1.27%, -0.81%, and -1.33%. The silver lining was in Personal Consumption Expenditures which added 1.52% to the negative print, most of it however driven by a surge in spending ahead of the fiscal cliff. Ironically, this was the biggest government-driven detraction from growth since Q1 2011, when GDP led to a -1.49% cut in the GDP, same in Q4 when government spending on defense fell the most since 1972. The solution is simple: print moar drones. Enter Mali. And since everything is now AMZN-ing, we can't wait for the spin that the GDP's margins were actually better than expected, leading to a 200 point surge in the DJIA.

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Wed, 01/30/2013 - 09:42 | 3198305 Debtonation
Debtonation's picture

Get to work Mr. Chairman.

Wed, 01/30/2013 - 09:43 | 3198314 brewing
brewing's picture

long toner...

Wed, 01/30/2013 - 09:46 | 3198333 TotalCarp
TotalCarp's picture

Dear CNBS crew.. I shit in your cereal..

Wed, 01/30/2013 - 09:51 | 3198362 AlaricBalth
AlaricBalth's picture

Must...have...MOAR...WAR...
Get to work, Mr. President

Wed, 01/30/2013 - 09:54 | 3198383 Harlequin001
Harlequin001's picture

Bullish...

Wed, 01/30/2013 - 09:58 | 3198402 MillionDollarBonus_
MillionDollarBonus_'s picture

 

 

This is just short term noise. The stock market has shrugged off this insignificant news and will soon be making its way to new all time highs. Professional fund managers recognize that despite this minor set-back, the long term fundamentals for the US economy are overwhelmingly positive. Here are just a few of the endless positive indicators for our economy:

  1. A strong housing recovery
  2. A rising stock market
  3. A plunging VIX
  4. Record low interest rates
  5. Record low inflation
  6. Record number of college-educated Americans

When will masochistic doomer libertarians on this site recognize that they are simply wrong about economic collapse and the impending apocalypse? When will goldbugs, silverbugs and bitcoinbugs realize that their dreams of becoming kings of the universe will never materialize? 

 

 

Wed, 01/30/2013 - 09:59 | 3198410 TerminalDebt
TerminalDebt's picture

Whatever drugs you're on, I want some.

Wed, 01/30/2013 - 10:00 | 3198418 aka Gil
aka Gil's picture

Mopium, it's everywhere.

Wed, 01/30/2013 - 10:03 | 3198428 Freddie
Freddie's picture

Dope & Change

Winning!

Wed, 01/30/2013 - 10:19 | 3198507 AlaricBalth
AlaricBalth's picture

I think MDB is overdosing on the Herbalife products he is trying to sell.
You don't rely on your own supply.

Wed, 01/30/2013 - 10:28 | 3198536 trav777
trav777's picture

how was anyone expecting economic growth when aggregate energy supply is contracting?

Wed, 01/30/2013 - 10:41 | 3198610 EscapeKey
EscapeKey's picture

Printers becoming more energy efficient?

Wed, 01/30/2013 - 11:50 | 3198946 Zap Powerz
Zap Powerz's picture

Trav, my top explanations are:

Stupidity, Cognitive dissonance, willful ignorance, sociopathy.  Mostly sociopathy.

Wed, 01/30/2013 - 11:58 | 3198984 odatruf
odatruf's picture

How Trav?  Well while Corzine walks among us, anything could happen. I believe in Forward!

 

Wed, 01/30/2013 - 15:14 | 3199693 hapless
hapless's picture

Shut. Up.

Wed, 01/30/2013 - 10:20 | 3198509 SamAdams
SamAdams's picture

So you are saying the market is underbought.... I read you, I read you.  Expect current overbought oscillator to pop right off the chart today.  To irrational and beyond!

Wed, 01/30/2013 - 11:09 | 3198765 whatsinaname
whatsinaname's picture

Maybe Obium ?

Wed, 01/30/2013 - 13:43 | 3199352 Glass Seagull
Glass Seagull's picture

 

 

Whatever it is, probably purchased with bitcoins.

Wed, 01/30/2013 - 10:00 | 3198414 Xibalba
Xibalba's picture

When will you acknowledge the fact that money printing as polital policy has failed?  The Fed has failed in all of it's mandates, yet you somehow think this is a positive thing and short term noise?    

Wed, 01/30/2013 - 10:55 | 3198692 CH1
CH1's picture

MDB is 100% sarcasm. He doesn't 'acknowledge' things.

Wed, 01/30/2013 - 12:12 | 3199043 Overfed
Overfed's picture

Since MDB pretty much speaks in ironic terms, I can never decide whether to give him green or red arrows. Green 'cause it's hilarious, or red, since he says the opposite of what he means. Hmm...

Wed, 01/30/2013 - 12:31 | 3199112 Carl Spackler
Carl Spackler's picture

Agreed. It is all sarcsm.

U.S. socialists and liberals have never called out libertarians on anything.  It's not a group on their radar screen.

And, such a soundbyte has zero impact on the sheeple (other than to confuse them), so you know his message has to be sarcastic.

Wed, 01/30/2013 - 10:01 | 3198415 Orly
Orly's picture

Bitcoin Bugs.

BCBs.  Loves it!

:D

Wed, 01/30/2013 - 10:03 | 3198435 malikai
malikai's picture

It's that time again:

MillionDollarBonus_ Tue, 05/18/2012 - 09:33 -

I predicted this from the start. FB is the AAPL, and any price below $100 is CHEAP. You may laugh at me now, but I'll be laughing when it's trading at $200 and you doomers are chasing the market.

 

MillionDollarBonus_ Tue, 05/18/2012 - 11:12 -

Everyone is excited about this historic IPO except for lame uptight doomer libertarians. FB is a fresh new IPO - perfect for young investors just getting started and looking to build a respectable but forward looking portfolio. This is a great day for hip, upmarket investors, but a sad day for envious and bitter and sulking rednecks.

 

MillionDollarBonus_ Tue, 05/22/2012 - 08:45 -

Bought another 300 shares yesterday - taking advantage of this discount. It's all about dollar-cost averaging. My average entry is now at $38 so I'm in the same boat as most of the top buy-side bidders at the original offering.

 

MillionDollarBonus_ Tue, 05/29/2012 - 10:42 -

$30 should be solid psychological support. Bought another 500 shares this morning - The value is off the charts here. This cannot last much longer. This is the social networking revolution - older people just don't get it.

 

MillionDollarBonus_ Thu, 08/16/2012 - 10:20 -

For long term value investors, this is just short-term noise. This is a great dip-buying opportunity – and honestly, who cares whether you pay $19 or $40 when the long term price target is in the $100s???

 

MillionDollarBonus_ Fri, 08/17/2012 - 16:32 -

You idiots talk about the sell off as if this is just normal market activity ... this is a JOKE. How the HELL can the SEC just stand by and watch while these manipulative short sellers hammer the stock into the ground???

Wed, 01/30/2013 - 10:07 | 3198457 TerminalDebt
TerminalDebt's picture

Are you stalking him?

Wed, 01/30/2013 - 10:13 | 3198479 Orly
Orly's picture

Apparently, "fascetious" and "parody" are not in his lexicon.  I think I can help...

He's funnin' with ya, Bubba.

:D

Wed, 01/30/2013 - 10:19 | 3198506 malikai
malikai's picture

I should stalk MDB better because I'm sure he's had newer, better content since Aug last year.

I should be ashamed of myself, actually.

Wed, 01/30/2013 - 10:47 | 3198645 Spastica Rex
Spastica Rex's picture

MDB is a bore with no new material. Zero entertainment value. As bad as Tom Cruise.

Wed, 01/30/2013 - 11:05 | 3198738 Keegan11
Keegan11's picture

Hahahaha!!!!! Impeach Obama! Empower Maliki!!! Good one Maliki - stalker though you may be :)

Wed, 01/30/2013 - 10:17 | 3198498 CoolBeans
CoolBeans's picture

MDB strikes again :)

Great sarc, as always.

Wed, 01/30/2013 - 10:22 | 3198515 EmmittFitzhume
EmmittFitzhume's picture

MDB has been called in for damage control.

Wed, 01/30/2013 - 10:31 | 3198549 stant
stant's picture

deer antler spray, hookers and blow then kick back with some 40s. watch the drone races. rally on bitchez

Wed, 01/30/2013 - 12:25 | 3199086 daxtonbrown
daxtonbrown's picture

6. Record number of college-educated Americans

 

Bwahaha. I know my small business is eagerly seeking a women's studies major to take out the trash.

Wed, 01/30/2013 - 13:13 | 3199245 TuesdayBen
TuesdayBen's picture

That is a whiny lawsuit in the making. Don't do it.

Wed, 01/30/2013 - 21:05 | 3200915 stant
stant's picture

hire her if shes got big tits 28 hrs a week ,then bang the hell out of her , then let her take the gov plan, but its sloppy secounds the bank got there first with the student loans, but hell you paid for it! or will

Wed, 01/30/2013 - 13:32 | 3199302 ZackAttack3
ZackAttack3's picture
  1. A strong housing recovery................bouncing along the bottom with foreclosures being held out of the pipeline
  2. A rising stock market......................due to money printing and free money to banks
  3. A plunging VIX...............................due to money printing and free money to banks to prop up the market
  4. Record low interest rates.................free money to banks.............screws over fixed income and savers (regular people)
  5. Record low inflation........................Maybe on Planet Mars
  6. Record number of college-educated Americans......in large amount of debt unable to pay back

Enjoy!

Wed, 01/30/2013 - 13:32 | 3199303 ZackAttack3
ZackAttack3's picture
  1. A strong housing recovery................bouncing along the bottom with foreclosures being held out of the pipeline
  2. A rising stock market......................due to money printing and free money to banks
  3. A plunging VIX...............................due to money printing and free money to banks to prop up the market
  4. Record low interest rates.................free money to banks.............screws over fixed income and savers (regular people)
  5. Record low inflation........................Maybe on Planet Mars
  6. Record number of college-educated Americans......in large amount of debt unable to pay back

Enjoy!

Wed, 01/30/2013 - 13:33 | 3199305 ZackAttack3
ZackAttack3's picture
  1. A strong housing recovery................bouncing along the bottom with foreclosures being held out of the pipeline
  2. A rising stock market......................due to money printing and free money to banks
  3. A plunging VIX...............................due to money printing and free money to banks to prop up the market
  4. Record low interest rates.................free money to banks.............screws over fixed income and savers (regular people)
  5. Record low inflation........................Maybe on Planet Mars
  6. Record number of college-educated Americans......in large amount of debt unable to pay back

Enjoy!

Wed, 01/30/2013 - 13:43 | 3199351 shutterman
shutterman's picture

I kept waiting for the punchline to tie together this brilliant sarcasm, He kind of sucks at the bringing it all together part.

Wed, 01/30/2013 - 09:58 | 3198404 eclectic syncretist
eclectic syncretist's picture

Damn straight!  This must be worth at least 500 Dow points.

Wed, 01/30/2013 - 09:56 | 3198393 TotalCarp
TotalCarp's picture

The sad thing is i am still pretty sure that "they" will squeeze futures into the green even on this. But for this one moment i feel sheer joy that a dog feels whilst watching a neighbours cat get run over by a truck.

Wed, 01/30/2013 - 09:47 | 3198345 Go Tribe
Go Tribe's picture

That's perfect!

Wed, 01/30/2013 - 10:02 | 3198425 augustusgloop
augustusgloop's picture

the costanza economy

Wed, 01/30/2013 - 10:31 | 3198551 WillyGroper
WillyGroper's picture

"It ain't watcha do, it's the way that you do it"

And that's what gets results.

Wed, 01/30/2013 - 09:46 | 3198337 TideFighter
TideFighter's picture

The result of taking away our guns and adding 11,000,000 targets. 

Wed, 01/30/2013 - 10:06 | 3198453 midtowng
midtowng's picture

Normally I can figure out why this is bullish, but I must admit of being at a loss this time.

Wed, 01/30/2013 - 10:08 | 3198461 TerminalDebt
TerminalDebt's picture

This means more QE, thats why its bullish

Wed, 01/30/2013 - 10:30 | 3198545 mademesmile
mademesmile's picture

+1

exactly

"The U.S. economy posted a stunning drop of 0.1 percent in the fourth quarter, defying expectations for slow growth and possibly providing incentive for more Federal Reserve stimulus."

http://www.cnbc.com/id/100419252

Wed, 01/30/2013 - 11:07 | 3198750 Shizzmoney
Shizzmoney's picture

This.

Wed, 01/30/2013 - 11:13 | 3198782 ich1baN
ich1baN's picture

A -.01% drop in GDP..... doesn't that work out to almost -.05% on an annualized basis?

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