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GDP Disaster: Final Q1 GDP Crashes To -2.9%, Lowest Since 2009, Far Below The Worst Expectations

Tyler Durden's picture




 

Remember when in January 2014, Q1 GDP was expected to rise 2.6%? Well, here comes the final Q1 GDP revision and it's a doozy: at -2.9%, far below the -1.8% expected and well below the -1.0% second revision, it is an absolute disaster, and is the worst print since Q1 2009.

And while a bad GDP print was largely expected, the driver wasn't: personal consumption expenditures somehow crashed from 3.1% to just 1.0%, far below the 2.4% expected, meaning that all hope of a consumer recovery is dead. Finally, as a reminder, US GDP has never fallen more than 1.5% except during or just before an NBER-defined recession since quarterly GDP records began in 1947. Good luck department of truth propaganda machine, because even assuming 3% growth every other quarter in 2014 means 2014 GDP will be 1.5% at best!

GDP long-term:

And GDP broken down by components:

For some context, this is a 6 standard deviation miss - as economists were striongly biased to the upside beat...

 

Do you believe in miracles?

 

Source: Dept of Commerce

 

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Wed, 06/25/2014 - 08:45 | 4892588 Shocker
Shocker's picture

Is this really a shocker?

Current Job Situation: http://www.dailyjobcuts.com

-

Wed, 06/25/2014 - 08:47 | 4892602 Chris Jusset
Chris Jusset's picture

LESSON #1: BUBBLE ECONOMIES DO NOT WORK! THEY ALWAYS FAIL!

 

Perhaps it's time that the USA goes back to free-market capitalism rather than a Fed-controlled, centrally planned economy?

Wed, 06/25/2014 - 08:47 | 4892614 fonzannoon
fonzannoon's picture

Looks like Japan stick the "Mission accomplished" sign in the ground and moved on like the fed has. GDP be damned.

 

http://www.bloomberg.com/news/2014-06-24/abe-declares-end-of-deflation-a...

 

Unless companies unleash record cash and increase salaries and capital spending, the danger is that Abenomics ends up hurting purchasing power without reviving the economy.

Wed, 06/25/2014 - 08:49 | 4892634 GetZeeGold
GetZeeGold's picture

 

 

I'll take Obamacare and 29.5 hr/wk jobs for a thousand Alex.

Wed, 06/25/2014 - 08:53 | 4892648 Chris Jusset
Chris Jusset's picture

The current massive misallocation of capital caused by ZIRP, QE, and bailouts MUST END ...

Wed, 06/25/2014 - 08:59 | 4892685 GetZeeGold
GetZeeGold's picture

 

 

We really need to rename the Washington Redskins......gotta get on that!

Wed, 06/25/2014 - 09:02 | 4892695 Headbanger
Headbanger's picture

Can you say "massive liquidity crisis dead ahead the Fed can't fix!"?

Yeah... 

 

Wed, 06/25/2014 - 09:04 | 4892707 Serfs Up
Serfs Up's picture

Try to act surprised when the 2Q "beat by a mile" stawk relief rally happens, even though the combined 1Q + 2Q GDP prints will = zero.

Wed, 06/25/2014 - 09:12 | 4892761 SWRichmond
SWRichmond's picture

And with real inflation running at about 10%, what is real (inflation-adjusted) GDP actually doing?

Wed, 06/25/2014 - 09:14 | 4892772 Muddy1
Muddy1's picture

My stacks are a bit shinier this morning.

Wed, 06/25/2014 - 09:19 | 4892801 1000 splendid suns
1000 splendid suns's picture

So, does this new number include government spending and interest on the debt?...

Wed, 06/25/2014 - 09:29 | 4892833 Fredo Corleone
Fredo Corleone's picture

One brief comment regarding this morning's GDP number:

"Lavorgna !"

Wed, 06/25/2014 - 10:07 | 4893023 Killer the Buzzard
Killer the Buzzard's picture

Fredo:  You're smaaaart.  Not dumb... like everybody says.

Wed, 06/25/2014 - 10:12 | 4893060 dontgoforit
dontgoforit's picture

Good God, people!  They are winning.  The communists have taken us over without firing a shot.  Cloward-Piven in full swing and the obamakrieg is running us down by proxy.  We are most thoroughly screwed.

Wed, 06/25/2014 - 11:38 | 4893511 Oh regional Indian
Oh regional Indian's picture

Slightly OT, but really it's all related. Libertarians are going to go a little apoplectic seeign this video:

http://govtslaves.info/journalist-accosted-security-mayor-bloomberg-gun-...

Wed, 06/25/2014 - 11:47 | 4893550 Obchelli
Obchelli's picture

Yahoo finance page didn't even mention this... It passed as non event. Imagine if GDP beat by 0.1% this would be all over the place how great economy is doing and Dow would be up 200 points (It still may even with this crappy news - you never know)

Wed, 06/25/2014 - 12:30 | 4893802 MillionDollarBogus_
MillionDollarBogus_'s picture

DOW is up 22 points.

nothing to see here.

Move on...

Wed, 06/25/2014 - 20:16 | 4895884 philipat
philipat's picture

This really isn't rocket science. The US economy is comprised 70% consumer consumption, so for the economy to grow requires an increase in consumption. With real net disposable income falling, that isn't going to happen.

Wed, 06/25/2014 - 11:49 | 4893573 Save_America1st
Save_America1st's picture

obviously they forgot to include prostitution and drugs into the new GDP.  And let's not forget to add in the obvious huge boost we're going to get with 30 million illegal aliens waltzing across the southern border.  What could possibly go wrong?

Wed, 06/25/2014 - 12:06 | 4893682 sixsigma cygnus...
sixsigma cygnusatratus's picture

Six sigma miss?  Hmmm, I hope Mrs. Sixsigma isn't reading this...

Wed, 06/25/2014 - 20:50 | 4896014 disabledvet
disabledvet's picture

Apparently there still isn't enough prostitution, drug dealing and illegal emigrating then!

I have to laugh at the clowns calling GDP a "backward looking indicator." REALLY? "What if the next print is down 5.3%?" Is that "backward" enough for ya?!!!

"This is the sound of entire polity collapsing." The good news is that as with Hitler "the Manichean Struggle only ends with them."

The rest of us...can move along now.

Wed, 06/25/2014 - 14:01 | 4894306 daveO
daveO's picture

Actually, we're in the late stages of decline. Like the USSR in the 1980's. They were a hollowed out shell of their former selves. Yet, they were held up as a formidable adversary by the same media that now tells us BHO is the second coming.

Wed, 06/25/2014 - 13:56 | 4894276 NegativelyBiase...
NegativelyBiasedCredulity's picture

It's the weather according to Lavorgna, he's doubling down: 4% Q2 GDP!!!

"This makes us confident that a substantial portion of the extraordinary decline in Q1 was some combination of weather and seasonal factor adjustment issues.Despite the horrendous Q1 showing, we remain upbeat that current quarter growthwill top 4%, and that the rest of the year will show 3%-plus growth"

Wooohoooo!!! 

Wed, 06/25/2014 - 09:33 | 4892857 Spigot
Spigot's picture

Yes. But also note that understating inflation directly inflates GDP. IE - it's far worse than -2.9%.

My business has been feeling it this year. Retailers are not reordering much and new retailers are reluctant to order. Web site sales are far below last year. I live rural near a modest size city of 75k pop. When I am outside there is an erie silence ... very little noise is being generated. Road tTraffic is very light. It's almost as if everyone gave up and went home.

Wed, 06/25/2014 - 10:02 | 4892997 Joe Davola
Joe Davola's picture

At least no one's proposing an increase to gas taxes.

Oh wait.

Wed, 06/25/2014 - 10:14 | 4893072 TeamDepends
TeamDepends's picture

Exactly, and it's not like there are hordes of unwashed underwearless masses invading from the south either.

Wed, 06/25/2014 - 10:36 | 4893201 BraveSirRobin
BraveSirRobin's picture

Thank God for Obama. He so expertly guides the economy so that we can have a 2.9% contraction and yet weekly unemployment claims fell, as did the unemployment rate, while the economy created over 200,000 jobs per month. No one has ever done that before. He is truly God's gift to humanity... and so hunky and dreamy, too. did you see those photos of him lifting weights??? I'm sure it gave Putin a Boehner.

Wed, 06/25/2014 - 20:19 | 4895888 mkkby
mkkby's picture

Don't worry.  All those politically aware jobless people are about to rise up and hang the banksters, burn down the NSA and demand the borders be closed to H1-Bs and illegals. 

Wait a minute... what did you say was on TV?

Wed, 06/25/2014 - 12:11 | 4893712 LostandFound
LostandFound's picture

The typical consumer is tapped out, this isnt going to change and will only get worse as people desperately try and keep out of debt

Wed, 06/25/2014 - 14:37 | 4894506 Things that go bump
Things that go bump's picture

My little web business has gone south. Granted, its seasonal (Christmas), and this is my slow time, but I usually get at least some orders throughout the spring and summer. Last year was bad, but this year I'm hardly even getting any hits. Thank God I don't have any real expenditures to speak of or I'd be out of business.

Wed, 06/25/2014 - 18:14 | 4895460 Abi Normal
Abi Normal's picture

Now, now people....what do you expect them to do...tell us the ship is gonna sink (we're gonna crash)?  If they did that, it would start a real crash right then...bank runs, holiday, etc

I just wish there was something that could be done, but what?  Even if we STOPPED all spending, this thing is going down...

Just a matter of time...strap on the Chinese nose guards, you will need them.

I agree, for once, with all the comments here so far...

Wed, 06/25/2014 - 20:31 | 4895935 Squid Viscous
Squid Viscous's picture

maybe it's the KISS memorabilia, the idiots that thought they were a good band are slowly dying off?

Wed, 06/25/2014 - 10:12 | 4893054 RafterManFMJ
RafterManFMJ's picture

What about the whores? Won't someone PLEASE think of the whores?

Wed, 06/25/2014 - 10:49 | 4893259 TeamDepends
TeamDepends's picture

Congress?  Don't you worry none li'l buddy, they'll come out of this smelling like a rose.  Until they swing from lampposts.  Then they'll be stinky.

Wed, 06/25/2014 - 12:15 | 4893721 Meat Hammer
Meat Hammer's picture

Nobody will swing.  They'll all escape untouched while we kill each other over Hot Pockets.  

I occassionally watch this video of the execution of Mussolini et al http://www.liveleak.com/view?i=381_1322985947 and stare off longingly into the distant horizon, imagining the faces in the video being those of McCain, W, Obozo, Boehner, the wookie, the Clintons, and many more.

 

 

Never

Gonna

Happen 

 

Wed, 06/25/2014 - 18:29 | 4895511 ThroxxOfVron
ThroxxOfVron's picture

Never 

Say 

Never

 

 

http://www.youtube.com/watch?v=bYDe4d6ohXw

Wed, 06/25/2014 - 23:02 | 4896508 TeamDepends
TeamDepends's picture

Was it over when ISIS bombed Pearl Harbor?

Wed, 06/25/2014 - 11:13 | 4893391 booboo
booboo's picture

No, but it includes prostitutes and drug sales.

Wed, 06/25/2014 - 11:30 | 4893471 El Oregonian
El Oregonian's picture

Is this still a... ummm, what does CNBC call it?... A "Soft Patch"?....

Wed, 06/25/2014 - 09:20 | 4892803 DaddyO
DaddyO's picture

What does anyone expect?

We just had an election yesterday and its more of the same, and we're expecting different results?

Insanity much?

As long as the sheeple continue to vote themselves into the treasury and the FED being happy to oblige, this will continue.

I've never been in a better place with my preps and attitudes towards continued decline caused by corruption in Wall St and Vichy DC.

They will not fix themselves and we are heading for a defining moment sometime in the not too distant future.

ZeroHedge Accordingly!

DaddyO

Wed, 06/25/2014 - 18:17 | 4895468 Abi Normal
Abi Normal's picture

We did what we had to do in the 7th district and got rid of Cantor...doesn't seem the rest of the country got the message, sadly!

VOTE ALL INCUMBENTS OOOOOUUUUUUUTTTTTTT! FUCK...

Wed, 06/25/2014 - 09:21 | 4892806 knukles
knukles's picture

Been tellin' ya'... the global economy sucks bad, big time.
LIQUIDITY TRAP

If there's been no response after historically humongoloid 8 years of unparallelled fiscal and monetary stimulus, something's wrong and you all know what it is, and their behavior is not going to change.

Take 1 shot of Jackson (Banks) and 1 shot of Eisenhower (military-industrial-congressional complex) shake over campaign contributions and kiss your collective asses goodbye.

Wed, 06/25/2014 - 10:17 | 4893099 dontgoforit
dontgoforit's picture

My hope is that when the maddened masses go looking for blood, they sieze upon the right characters to take out their wrath.  But that is unlikely as those folks will be 'gone' to bunkerland.

Wed, 06/25/2014 - 11:25 | 4893450 TheReplacement
TheReplacement's picture

Everyone looks the same when you are hungry.

Wed, 06/25/2014 - 12:00 | 4893640 Sages wife
Sages wife's picture

That's the really scary part, you bet.  "When there is food on the table, there are many problems.  When there is no food on the table, there is only one problem."

Wed, 06/25/2014 - 12:22 | 4893758 dontgoforit
dontgoforit's picture

And as Ian Fleming wrote as a chapter title in one of his many novels, "All Cats Are Grey in the Dark"

Wed, 06/25/2014 - 18:18 | 4895475 Abi Normal
Abi Normal's picture

A man has to know his limitations!  Hope your bunkers and preps are ready? No, well then, you will become...what's for dinner!

Wed, 06/25/2014 - 09:18 | 4892794 Muppet Pimp
Muppet Pimp's picture

This:

The monetarists failed to make their case with the public. If the monetarists DID make their case with the public by stating that they would in no way expand the government, the public would have endorsed it. I blame this failure entirely on the monetarist public intellectuals who allied with the Keynesians instead of the Neo-classicals (improve industry) and Austrians (improve human capital) with whom most Americans are more sentimentally aligned – puritan ethics prevail.

From Here:

http://www.propertarianism.com/2012/02/10/monetarists-picked-the-wrong-allies-in-keynesians/

Has a hell of a lot of truth in it.

If economics were more concerned with the economy than impressing politicos and getting tenure at political organizations masquerading as educational institutions, the recession would have been much shorter.

Wed, 06/25/2014 - 11:20 | 4893425 LawsofPhysics
LawsofPhysics's picture

Allow me to simplifty all that information;

Printing money and handing it out to a select few is no basis for a sound monetary system.

In addition, backing all risk/failure by robbing the tax base also accelerates your own demise.

Wed, 06/25/2014 - 13:56 | 4894273 Liquid Courage
Liquid Courage's picture

19th Century Wisdom:

"The ultimate result of shielding men from the effects of folly is to fill the world with fools."

Herbert Spencer English philosopher (1820 - 1903)

 

21st Century "Wisdom":

"Our credible commitment to these core elements is reflected in medium to longer-term inflation expectations remaining firmly anchored in line with the Governing Council's aim of keeping inflation rates below, but close to, 2 percent over the medium term."

ECB President Mario Draghi

 

Catch the contrast there? Drill down through Draghi's odious drivel and the contrast is exactly diametric.

Thu, 06/26/2014 - 00:33 | 4896702 FreedomGuy
FreedomGuy's picture

So, I am heading out to work today listening for the traffic reports and I hear that GDP contracted about 3% for the last quarter. I say, "Holy shit, that is big!" to myself. I then wait to hear the early stock market numbers figuring that I will hear of some huge drops  like 200 points given the current lofty heights. What do I hear, "Market up about 28 points."

Then I do a second "Holy shit!". I feel like we are in economic Alice in Wonderland. There is now about zero connection between the market and any rational economic thinking. The market is tied to HFT programs and completely focused on government/Fed/Central bank actions...not actual economic data.

This is really insanity and the complete coopting of the economy by central planners and the willing participation of the financial sector. It is codependency at best between the two or you conspiracy types are right. I might have to apologize one day.

Wed, 06/25/2014 - 10:00 | 4892982 Bangin7GramRocks
Bangin7GramRocks's picture

And the filthy paper shufflers shrug their shoulders, chuckle a bit and then go about deciding which Ferrari to drive today. Welcome to the Gilded Age 2 motherfuckers!

Wed, 06/25/2014 - 10:17 | 4893101 ThroxxOfVron
ThroxxOfVron's picture

The second quarter is going to be only marginally less horrible and still deeply negative..

Two quarters of negative GDP is the Government's own definition of a recession.

Bush is long long gone and cannot be blamed any further for the state of affairs and Executive choices leading to or reacting to that state of affairs.  

 

 

WELCOME TO OBAMA'S RECESSION.

 

Let's see how Barack Recession Obama and his corrupt Bunglers tries to spin their way out of this mess...

 

Wed, 06/25/2014 - 10:55 | 4893293 Oldwood
Oldwood's picture

You are as deluded as the rest. This will NEVER be hung on Obama by the MSM, and that is all that counts. Everyone else is a right wing extremist bitterly clinging to the policies of JFK.

Wed, 06/25/2014 - 12:03 | 4893662 Harrison
Harrison's picture

You mean Nixon. Or maybe Hitler.

Wed, 06/25/2014 - 12:25 | 4893776 Oldwood
Oldwood's picture

Yeah, Hitler was the guy pushing for smaller government, lower taxes and the rule of law.

Wed, 06/25/2014 - 12:20 | 4893751 stant
stant's picture

Which is the fed what's to put exit taxes on bonds

Wed, 06/25/2014 - 09:03 | 4892697 wallstreetapost...
wallstreetaposteriori's picture

Hockey stick second half growth forecasts in 3...2....1.... "it was the weather, we expect the second half to roar back.  Just look at the new and existing home sales numbers... they are great.. blah... blah... blah.... spin.... spin... spin..."

 

Fucking break aleady.  I like making money more on the short side.

Wed, 06/25/2014 - 09:12 | 4892756 Bindar Dundat
Bindar Dundat's picture

But this time it is different..really it is.  Everything is going up in U.S. dollars.

 

It may cost you $100 for a cup of coffee but your portifolo gave you a solid 9%....

Wed, 06/25/2014 - 10:46 | 4893244 Poundsand
Poundsand's picture

Pre-tax that is.  Oh and wait... with the coming capital controls and government take over of 401k etc... you will get a piece of paper telling you how wonderful it is.

Meanwhile the USG will be paying BONUSES again for all it's minions.

Wed, 06/25/2014 - 09:13 | 4892771 Never One Roach
Never One Roach's picture

Retail has been miserable. It showed a good picture of how miserable/depressed this economy is with a disappearing Middle Class.

Wed, 06/25/2014 - 10:51 | 4893268 Mark Urbo
Mark Urbo's picture

My prediction is that they will blame the weather.

 

Which is interesting in itself.  While running around the country and world making global warming (AGW) the number #1 priority, they are going to blame the severe cold weather for GDP collapse.

Wed, 06/25/2014 - 10:15 | 4893079 Dragon HAwk
Dragon HAwk's picture

Washington Tea Party Guys ,  I Mean Indians tossed all that Tea into the Bay, when they were mad at the Government right .

  close enough to me..

Wed, 06/25/2014 - 11:01 | 4893321 TheReplacement
TheReplacement's picture

Don't forget the Vikings.  Those losers are making a mockery of my ancestors.

Wed, 06/25/2014 - 11:08 | 4893360 earnyermoney
earnyermoney's picture

How bout the Washington Foreskins

Wed, 06/25/2014 - 13:45 | 4894209 madcows
madcows's picture

How about the Hacks, or Influence Peddlers?

Wed, 06/25/2014 - 09:04 | 4892701 Squid-puppets a...
Squid-puppets a-go-go's picture

these GDP contractions are coming closer together. Get dat biatch to the hospital!

Wed, 06/25/2014 - 09:50 | 4892934 Lewshine
Lewshine's picture

Geez! Look at these computers turn this trainwreck straight to the moon. DIE!

Wed, 06/25/2014 - 09:59 | 4892978 madcows
madcows's picture

DAILY DOUBLE.  You're in the lead with negative 2.9%.  What would you like to wager, GetZeeGold?

Wed, 06/25/2014 - 10:58 | 4893310 Oldwood
Oldwood's picture

Is anyone wondering why they ever let this report see the light of day? It must be to provide context for what comes next. 1st quarter is dead and gone, so it is now the new baseline. Its all up from here right? A big positive .o2% growth for the second quarter is nothing but blue skies forever.

Wed, 06/25/2014 - 11:19 | 4893422 walküre
walküre's picture

uhm, no. it gets worse from here as contractions keep going deeper and deeper unless they put money in people's pockets to turn this around. Won't happen.

People are still broker and the banks are now tightening credit again.

Wed, 06/25/2014 - 11:37 | 4893502 viahj
viahj's picture

however mortgage qualification standards are easing again.  lower FICO scores for agency and gift funds as downpayment (zero equity) for FNMA.  GNMA is subprime. 

Wed, 06/25/2014 - 12:11 | 4893702 walküre
walküre's picture

Yes, theoretically but the banks still have to actually hand out the cash and mortgage applications are at their lowest levels. Sales of homes in CA which is a key market are down 20% in part due to a much lower inventory as fewer listings on the market.

Once the news of this -3% print is digested, businesses and individuals will go back into starvation mode. Guaranteed.

Wed, 06/25/2014 - 12:06 | 4893677 Oldwood
Oldwood's picture

The only people they are putting money in the pockets of are those at the top who are buying stocks and those at the bottom who are spending it all on Chinese crap that doesn't stay in our economy. The middle class consumers are being sucked dry.

Wed, 06/25/2014 - 19:05 | 4895662 conspicio
conspicio's picture

What is: Redefine base GDP measures and terms (again) and adjust at the next print for seasonal weather...

 

Wed, 06/25/2014 - 08:49 | 4892636 RevRex
RevRex's picture

Did the NBER change their definition of a recession to what it was prior to Bush?

Wed, 06/25/2014 - 10:20 | 4893121 dontgoforit
dontgoforit's picture

Probably; they've changed everything else.  Hope and miserable change.  How did people fall for this fool?  Hard to believe.

Wed, 06/25/2014 - 11:14 | 4893400 dontgoforit
dontgoforit's picture

Dreams From His Father are nightmares for us.

Wed, 06/25/2014 - 11:35 | 4893493 lunaticfringe
lunaticfringe's picture

Do you guys remember how the gov massaged the input model last year? Fucking charlatans, from the spring of 2013:

The government has now made a significant change in the gross investment number (I), which now includes research and development (R&D) spending, art, music, film royalties, books and theatre. This change in GDP statistics has not been implemented elsewhere in the world. So the United States is the first to accomplish this rewriting of the GDP number.

R&D spending, which shouldn't even be accounted for as investment, adds a significant amount to the GDP number — it accounts for around 2 percent of U.S. GDP. Art, music, film royalties, books and theatre add another 0.5 percent.

Another adjustment has been made to pension accounting. Previously, pension spending was included in GDP. After this adjustment, however, we also look at the "promise" to pay out pensions. So we are talking about imaginary numbers that are now included in GDP.

A last example is found in real estate. Commissions, legal bills and expenditures on real estate transactions are included in GDP as "investment." Obviously these expenditures aren't associated with real production.

How bad would it have been without this? Who knows.
Wed, 06/25/2014 - 08:48 | 4892619 Tabarnaque
Tabarnaque's picture

Mission accomplished here again I guess! Good job Ben, you bailed out at the right time!

Wed, 06/25/2014 - 08:48 | 4892620 RevRex
RevRex's picture

.

Wed, 06/25/2014 - 08:48 | 4892628 SheepRevolution
SheepRevolution's picture

Belgium, this is Washington calling. We have a problem. Please print more money. What? What was that? Oh... You're already printing it at a negative interest rate.

 

Well then... It must be the weather in that case?

Wed, 06/25/2014 - 12:13 | 4893719 SelfGov
SelfGov's picture

The system is failing due to the depletion of non-renewable resources.

Free market capitalism would merely attempt to accelerate that process and make the problem worse.

Fuck free-market capitalism.

Wed, 06/25/2014 - 21:37 | 4896184 Omegaman2211
Omegaman2211's picture

Fuck your hard-on for violence and force, statist.

Thu, 06/26/2014 - 05:08 | 4896952 Magooo
Magooo's picture

DEAD FUCKING ON.  Specifically oil:

 

High energy prices = less consumption because everything including the fuel in your tank costs more = layoffs = less tax revenue = government cutbacks, layoffs and debt increases = less consumption = more layoffs = less taxes =====  economic death spiral.

 

Compounding the problem is the fact that a weak labour market means real wages drop - as they are across the world right now - that means everything is more expensive and your buying power is dropping at the same time.

 

Governments recognize this and are trying to offset with debt, easy lending (they are purposely inflating bubbles), lower interest rates and money printing.

 

This all started in 2002 when oil went from $12 a barrel to nearly $40 (and of course has never looked back)

 

Of course they will fail - because the disease is expensive oil.  And there is no substitute

 

The economic death spiral will accelerate when the QE and ZIRP no longer have any effect and the confidence game collapses.

 

This moment will be known as the end of the industrial revolution by the few who survive.

 

This is not a Hollywood movie where the hero saves the day.  This is the reality we are facing.

 

Oh and those with their cute little shorts --- guess what --- you will eventually be right -- but you will collect a fist full of air... because when this fucker busts ---  even gold will be worth fuck all --- you will be able to pile your gold 20 feet in front of a pile of canned goods... and the starving zombies will stagger right past it --- with their can openers.

Wed, 06/25/2014 - 21:36 | 4896181 Omegaman2211
Omegaman2211's picture

LESSON #2: Governments do not work. They always fail.

Wed, 06/25/2014 - 08:56 | 4892677 Millivanilli
Millivanilli's picture

For the idiocracy...

 

Ow my balls

http://www.youtube.com/watch?v=wAg1r6zw7Bg

Wed, 06/25/2014 - 09:16 | 4892783 Hopeless for Change
Hopeless for Change's picture

IT'S BUSH'S FAULT

Wed, 06/25/2014 - 10:21 | 4893123 doctor10
doctor10's picture

unexpected? 

 

Obamacare has sucked out all the discretionary income of America into insurance company/Fed.Gov pockets.

 

Somebody is not paying attention if they're truly suprised by this.

Wed, 06/25/2014 - 11:13 | 4893394 undercover brother
undercover brother's picture

suprisingly, stocks are up now.  this means 2 things could have happened.   1.  certain people knew about the GDP fail in advance yesterday and sold the market mid-morning to the close, then after the announcement today, they covered.   or 2.   the fed stepped in and bailed out the market from reacting negatively to a much worse than expected number.  

Take your pick, 1 or 2. either one is crap and the fact that stocks are higher on a horrible GDP number is total bullshit.  

Wed, 06/25/2014 - 08:47 | 4892589 Rattling Bones
Rattling Bones's picture

Hope & Change

 

Nothing that another "Summer of Recovery" can't fix.

Wed, 06/25/2014 - 08:58 | 4892681 Millivanilli
Millivanilli's picture

Biden promised 250-500k jobs.  Obama said shovel jobs weren't so shovel ready. The press laughed.  Americans got fucked.  Again.

 

 

Wed, 06/25/2014 - 09:04 | 4892709 Squid-puppets a...
Squid-puppets a-go-go's picture

he meant $250 - $500k jobs - for his mates

Wed, 06/25/2014 - 11:16 | 4893414 Poundsand
Poundsand's picture

No he meant 250 to 500k more USG employee bonuses!  And that many more IRS, DHS, HHS, etc... people.  Can't have all that ammo with no one to properly disperse it.

Can't have a rebellion if everyone works for them, and is sucking on the same hind tit.

Wed, 06/25/2014 - 10:00 | 4892981 Chupacabra-322
Chupacabra-322's picture

Two articles posted here tells me this "Free Market" is rigged beyond anyone's imagination.

1. http://www.zerohedge.com/news/2014-01-12/great-buyback-surge-over-corpor...

2. http://www.zerohedge.com/news/2014-06-15/cluster-central-banks-have-secr...

N'fuff said.

Wed, 06/25/2014 - 10:49 | 4893194 ThroxxOfVron
ThroxxOfVron's picture

Chelsea CLINTON got a very nice $600K part-time job at NBC.

Hunter BIDEN and Devon Archer are both pulling fat salaries sitting on the board of the Ukrainian gas co. Burisma Holdings.   

Malia and Sasha OBAMA are now Senior Staff to the First Lady according to Michelle Obama's official expense reports.

Rory REID got a great job with Chinese owned energy consortium ENN Energy and is in charge of wrangling the subsidized purchase of Federally controlled land in Nevada.

 

 

Obama and Biden and Co. can find those $250K to $500K+++ jobs when they want to.

Maybe WE SHOULD ALL SEND OUR RESUMES TO THEIR OFFICES AND ASK THEM TO FIND THE KIND OF JOBS THEY GET FOR THEIR CHILDREN AND CRONIFACTORS FOR ALL OF US.

 

MAIL ALL RESUMES TO:

 

 

BARACK OBAMA

@ 'Find Me a Good Job, too.'

1600 Pennsylvania Ave NW,

Washington, DC 20500

Wed, 06/25/2014 - 11:15 | 4893406 undercover brother
undercover brother's picture

the only thing obama needs a shovel for is his own shit, which is now piling up rather deeply.  

Wed, 06/25/2014 - 08:44 | 4892590 motorollin
motorollin's picture

It's un-American to be bearish. Go out and spend, bitchez!

Wed, 06/25/2014 - 08:50 | 4892643 insanelysane
insanelysane's picture

Bitchez are spending but there is no money left after food and fuel.

Wed, 06/25/2014 - 10:26 | 4893154 RazvanM
RazvanM's picture

Yeah, spent the money, but even the bitchez are low on cash these days :))

Wed, 06/25/2014 - 10:34 | 4893190 Nick Jihad
Nick Jihad's picture

And if you won't spend, we'll do it for you, and send your grandkids the bill.

Wed, 06/25/2014 - 08:45 | 4892591 Jayda1850
Jayda1850's picture

Get to work Mr. Yellen.

Wed, 06/25/2014 - 09:00 | 4892689 SHEEPFUKKER
SHEEPFUKKER's picture

The Q1 GDP print is just noise.

Wed, 06/25/2014 - 09:05 | 4892718 Squid-puppets a...
Squid-puppets a-go-go's picture

'just noise' is what comes out of yellen's trap

Wed, 06/25/2014 - 11:16 | 4893132 dontgoforit
dontgoforit's picture

Belgium's been exposed.  Now it will be Zimbabwe.

Wed, 06/25/2014 - 09:05 | 4892715 tarsubil
tarsubil's picture

He's been working. Printing and fudging. Still -2.9. Wow. The Fed saves but reality puts in the rebounds.

Wed, 06/25/2014 - 09:59 | 4892977 Jack of All Trades
Jack of All Trades's picture

Clearly an excuse for Taper OFF

Wed, 06/25/2014 - 08:44 | 4892592 VulpisVulpis
VulpisVulpis's picture

Uh oh

Wed, 06/25/2014 - 08:45 | 4892594 AccreditedEYE
AccreditedEYE's picture

Annnnnd Futues barely blink!! LOL... just f-ing BTFATH.

Wed, 06/25/2014 - 08:47 | 4892610 DavidC
DavidC's picture

There's a biggish POMO today.

DavidC

Wed, 06/25/2014 - 08:47 | 4892612 madcows
madcows's picture

Nah, that was picked up in yesterday's sell off.  The insiders knew it was a crap GDP, and got out early.  They'll BTFD today.

Wed, 06/25/2014 - 08:49 | 4892623 thecoloredsky
thecoloredsky's picture

Because it's the past. Everyone is looking towards the rose-colored glass future!!

Wed, 06/25/2014 - 08:56 | 4892676 swmnguy
swmnguy's picture

Is it rose-colored, or blood-colored?

Wed, 06/25/2014 - 20:40 | 4895971 Row Well Number 41
Row Well Number 41's picture

More like Hawiian Punch to me.

#41

Wed, 06/25/2014 - 08:54 | 4892664 skidsmango1
skidsmango1's picture

...still hesitant to short this turd.  LOL.  Too many black eyes from before I suppose. 

Wed, 06/25/2014 - 09:29 | 4892839 CrashisOptimistic
CrashisOptimistic's picture

Do not short.  Do not go long.

Exit and seek farmland.  Do you really think you'll regret it in ten years?

Wed, 06/25/2014 - 10:28 | 4893164 BeerMe
BeerMe's picture

Probably.  Farmland is inflated like everything else.  Of course if you just need a plot to grow your own food...

Wed, 06/25/2014 - 11:24 | 4893441 walküre
walküre's picture

Is it inflation when those with cash are willing to give anything to hold something tangible rather than sitting on piles of worthless cash that gets diluted day after day after day?

Prices in shitty USD paper will never go down again unless it's on the auction block. By then who knows if the auctioneers will even transact with USD anymore.

Wed, 06/25/2014 - 08:45 | 4892596 Bosch
Bosch's picture

LOL

Wed, 06/25/2014 - 08:45 | 4892597 Mr. Saxby
Mr. Saxby's picture

So we can expect the SP500 to hit new record highs today.

Wed, 06/25/2014 - 08:45 | 4892598 insanelysane
insanelysane's picture

It was right in line with my expectations.

Wed, 06/25/2014 - 08:46 | 4892599 Aknownymouse
Aknownymouse's picture

Wow. That was a lotta snow!

Wed, 06/25/2014 - 08:45 | 4892601 Government need...
Government needs you to pay taxes's picture

And I just keep getting richer.  When you start REALLY starving, see my overseer about a job pickin cotton on my expanding plantation.

Wed, 06/25/2014 - 10:17 | 4893096 noless
noless's picture

pretty much, should have pledged fealty, too bad my conscience got in the way.

Wed, 06/25/2014 - 08:46 | 4892603 madcows
madcows's picture

Bad winter.  No doubt about it.  So, how's Q2 doing?

The chart is a bit fudgy though.  what's with the 3 figures for Q1?  Get rid of the 1st and 2nd revision.

Wed, 06/25/2014 - 08:53 | 4892657 insanelysane
insanelysane's picture

Q2 is doing just like Q1.  Instead of pulling in sales, we will soon be told not to worry because Q4 will be 8% as long as we elect the right team.

Wed, 06/25/2014 - 09:01 | 4892690 RadioactiveRant
RadioactiveRant's picture

The US economy will EXPLODE in Q4 with all the pent up demand. China better be ready.

Wed, 06/25/2014 - 09:49 | 4892929 DaddyO
DaddyO's picture

Is that before or after the adjustment for weather?

DaddyO

Wed, 06/25/2014 - 12:25 | 4893771 dontgoforit
dontgoforit's picture

The gardner, Chance, says, "In the spring, there will be growth." - Jerzy Kosinski, Being There

Wed, 06/25/2014 - 08:55 | 4892674 SHEEPFUKKER
SHEEPFUKKER's picture

In the winter if there's snow, you must count hookers and blow!

Wed, 06/25/2014 - 08:46 | 4892604 digitlman
digitlman's picture

#WINNING!

Wed, 06/25/2014 - 08:46 | 4892605 fonzannoon
fonzannoon's picture

Hahahaha

(what else is there to say)

Wed, 06/25/2014 - 08:50 | 4892644 Dr. Engali
Dr. Engali's picture

Lololololololo (that's what).

Wed, 06/25/2014 - 09:52 | 4892942 Hulk
Wed, 06/25/2014 - 12:26 | 4893777 dontgoforit
dontgoforit's picture

Bee-dee-waddup!

Wed, 06/25/2014 - 08:46 | 4892606 Obchelli
Obchelli's picture

Yes but all surveys are hitting extreme level of optimism. And this GDP number was massaged up also by liers

Wed, 06/25/2014 - 11:04 | 4893337 Oldwood
Oldwood's picture

Optimism is a sure sign that delusion has peaked. Hope and optimism are walking hand in hand here. Reality is death which only makes hope all the more important. Onward to the afterlife!!!

Wed, 06/25/2014 - 08:46 | 4892607 RadioactiveRant
RadioactiveRant's picture

Gold will fall as Americans unlikely to buy luxury goods. S&P will surge as investors seek a safe haven asset.

Wed, 06/25/2014 - 20:44 | 4895992 Row Well Number 41
Row Well Number 41's picture

No, Really. 

#41

Wed, 06/25/2014 - 08:46 | 4892608 JustObserving
JustObserving's picture

Keep buying US Treasuries - the US will grow out of its massive debt and unfunded liabilities of $1,260,000 per taxpayer and rising at $69,000 per year.  Forward.

Wed, 06/25/2014 - 09:36 | 4892876 CrashisOptimistic
CrashisOptimistic's picture

Anddd one more time. 

If you believe in US growth and Obama leadership, you short US T's.

If you don't.  If you see Japan then you know 0.5% US T's also looks like Japan.

 

Wed, 06/25/2014 - 13:06 | 4894010 KnightTakesKing
KnightTakesKing's picture

Can we get back to talking about important issues like racist Donald Sterling and changing the name of the Washington Redskins? 

This GDP talk is so unimportant. BTW, when's the iPhone 6 coming out?

Wed, 06/25/2014 - 08:47 | 4892616 Bosch
Bosch's picture

Hey remember this: 

https://twitter.com/huffpostbiz/status/461644916787933186 

 

"Obamacare just saved the U.S. economy from contraction "

Wed, 06/25/2014 - 08:52 | 4892656 GetZeeGold
GetZeeGold's picture

 

 

Thank goodness we have HuffPo....

Wed, 06/25/2014 - 08:53 | 4892659 the not so migh...
the not so mighty maximiza's picture

the problem is obamacare was not big enouigh to include pets, dogs cats, hampsters

Wed, 06/25/2014 - 10:09 | 4893033 Postal
Postal's picture

And rabbits. Don't forget my bunny. He's cute and soft and likes to cuddle. He deserves healthcare, too. *think* Just ike my favorite stripper...

Wed, 06/25/2014 - 11:50 | 4893577 CuttingEdge
CuttingEdge's picture

Shhh. Just had visions of a lightbulb moment in the WH.

Wed, 06/25/2014 - 08:49 | 4892624 Racer
Racer's picture

Oooops, must be really really bad in actual reality if the fake numbers are as bad as THAT!

Wed, 06/25/2014 - 09:13 | 4892769 holdbuysell
holdbuysell's picture

Let's start with the unicorn and skittles deflator which doesn't come close to backing out what real inflation is to adjust the nominal GDP print. This GDP print was much lower in real terms than shown if using the true deflator.

Wed, 06/25/2014 - 08:49 | 4892626 Yen Cross
Yen Cross's picture

   Stay away from tall buildings today, it's going to be raining bankers.

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