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GDP Disaster: Final Q1 GDP Crashes To -2.9%, Lowest Since 2009, Far Below The Worst Expectations
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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Remember, boys and girls, the stock market is for people (and algos) who don't know how to create wealth.
its no disaster. show me hungry people in the states....that is a disaster
truely who cares , since 2008 economic data and zero hedge articles
are so far apart. the zero hedge views are more unlikely then Isis running FIFA .
....show me hungry people in the states
Well....we saw what happened when EBTs went down for a day.
Was it even a day?
"Calm Down doomers !!
It is just a little more noise than expected .
Dow will up and gold down, I promise ."
Yellen .-
Consumer demand missed. Gee, that's a shocker. Are they finally getting the message that, the consumer is tapped out and has no money?
Similar to 1920's Germany, the only value was in the land (e.g. the RentenMark). The Gold was removed in 1972, so now the US may start selling Oil again on the open market.
The creative fiat finance is dead, which funded this largest credit expansion. Its gone, Kaput.
And you wondered where all the Enron, Arthur Andersson, etc., accountants went? The went to re-education camp, camp W. Smith, and came out all fixed up to be even more creative, aka, deceptive, than ever before. They went far and wide! From gold vaults to Chinese warehouses, to your local bank. What? You have no local bank?
Decentralization scares the fuck out of the fascist oligarchy. By controlling your food, energy, housing and employment they control the people. Owning most media helps too.
Line up the attorneys, banksters and accountants and give them a bonus. There, all fixed for the next report.
Long EBT
Organize ways to accept EBT is making the most sense.
Perhaps I'll open a Chicken and Waffle joint in Detroit and franchise the EBT concept.
Printing you way into a negative GDP, economic THEORY at it's best. Gee I wonder if the lack of velocity has a f'ing thing to do with it? The people in charge aren't only stupid, they're evil and that's a bad combination for a nation that needs a whole order of magnatude less greed in order to recover. I just wonder if Obama is playing a violin while the whole damn thing burns.
They just need to print moar.
double post - sorry!!
I think he's an o'bango player.
If anybody is in business they are seeing this along with Q2 not being much better. June has picked up a bit but still not great. Kind of wonder now what this headline will do to peoples' psychology.
The truth is most monthly spending is going to food, energy and housing. Seems a lot of people are done playing the credit game or they are maxed. They don't have the money to spend on the extra things.
doesn't matter to the banksters. Derivative levitation is the order of the day. The Enterprise is going to implode at this rate. Scottie, how are our cores? Burning captain, dunno how much longer I can keep her from a full scale melt down. Kirk - Just keep her humming, and not a word to the others. Prepare the escape capsules and let me know the minute you think its going critical. Will meet you at the capsule hanger. Kirk out!
If you doom & gloom ZHers had just bought moar NFLX and AAPL instead of shiny rocks we wouldn't be in this mess. You'll get your minds right at FEMA camp.
US commando known as 'Lawrence of Afghanistan' kicked out of military for sex and drugs abuse. TE would be amused.
Apologies for being off topic. You may now downvote.
Ae they counting blow jobs?
Chelsea CLINTON got a very nice $600K part-time job at NBC.
Hunter BIDEN and Devon Archer are now 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
Don't foget Chelsea's on-going royalties from modelling for Cabbage Patch Kids...
I am 100% dead serious.
It would be the ultimate quiet protest / act of peaceful civil disobedience.
Everyone that doesn't have a job and wants one or who wants a better job than what they have should do this.
I want MILLIONS of Resumes and Cover Letters to inundate the White House mail room.
Send them to Biden, to the Speaker of the House, the Senate Majority and Minority Leaders, to the Offices of each of your Congresspersons and Representatives, to your State Governor as well...
But, most important:
BARACK OBAMA
@ 'Find Me a Good Job, too.'
1600 Pennsylvania Ave NW,
Washington, DC 20500
Better Chinamen then Cliven Bundy, that redneck who thinks he is special.
And our 19 weeks and change State Dept paid shill cocksucker weighs in....
We had Obama Care impact, $100 dollar plus oil, and more statutory requirements. Fed cannot help since the problems need to be fix via tax reform and legislation not the fed printing more money. Hard to see if we can grow at all this year. Guess this means QE forever.
We had Obama Care impact, $100 dollar plus oil, and more statutory requirements. Fed cannot help since the problems need to be fix via tax reform and legislation not the fed printing more money. Hard to see if we can grow at all this year. Guess this means QE forever.
I agree, and the policies of printing money lead to more of what you just said so we are indeed in a death spiral unless someone makes some VERY tough political/monetary choices which will never happen.
Thank God Germany still trust Federal Reserve to keep its gold safe !!
Time to blame the weather, Putin, Ukrany, Mexicans, Jews, Godzila and soccer tourment .
-2.9% GDP. See, this is another reason we know global warming is coming. Bend over folks, hot prod taxation cattle prod incoming.
Obviously it's bullish.
Let’s add this up…. We were forced to bailout the banks and pension funds.
That makes their money ours; meaning credit fraud, identity fraud and ripping off old ladies who are on pension income is A-OK.
They'll get another bailout so it's all good.
US companys are leaving abroad! England just borrowed 13.3 Billion from IMF.
Things are great in the wizard of OZ!
That's like 135 bucks per person. A pay-day loan would make more sense.
Q4 2013 - (0.1%) GDP
Q1 2014 - (2.9%) GDP
Two consecutive quarters of negative GDP, doesn't that mean recession?
In the old days two consecutives quarters of negative growth did mean Recession. But who needs the old days?
I don't know what two quarters of negative growth means today.
No doubt some government shill will tell us that all is sweetness and light.
Not if you take tens of millions of Americans off the rolls and don't count them -much less the additional 20 million illegals Obama has invited into our country.
The only thing recessive under obamas watch are the recessive genes in the white house.
Recessive? Don't you mean retarded? (No offense intended to any person that is "learning ability challenged" or institutionalized, as they are, in my opinion, a higher class of people and not deserving of insults because they don't have a choice in the matter. But those WH fools are supposed to be college educated.)
Guess all shorts just got anhilated there, what a total fucking joke
If we can just give Obama one more term, the recovery will be right around the corner.
Sign the Democrat petition today!
It's time for 2nd term Obama (obama 2) to start blaming 1st term Obama (obama 1)
GDP is irrelevant. So what if the masses are squeezed-the 1% and the 9% servant class that serves them is all that counts. They are increasing their wealth so all is well. FEMA camps, the police state , a lying propagandist controlled media, a subservient Congress owned lock stock and barrell by bribes and sex scandals, a bought off Academia, and a fallback of private contractor armies - -all of these make the elites secure and comfortable that they can continue their plundering of the wealth of America. If the masses get out of hand, another depression followed by war will keep them occupied.
paving the way for a global NIRP and reset ... give it a few more months
Everyone just be calm, keep your seat. I just heard from the smartest people on the planet (tv). There will be a 6-7 point reversal in the second quarter. Inventories will be restocked (walmart shelves are empty). Healthcare will become much cheaper (due to obamacare). Thousands of free laborers are currently being imported. Using 5 and 6 year olds corporate profits will soar. In the new normal, it is not uncommon to see 6 point GDP jumps whenever we need them.
Why? Are they going to change the calculation again? Maybe we'll get lucky. They might add hookers and blow to the calc.
BUY !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
I am surprised that GDP is that high. With no money velocity it must be the bottom 50% and government spending on the top 20% that keeps it going.
That's the scary thing...I'm sure that number WAS manipulated to make it better than it was in reality.
Shitty Q1 GDP +biggest ever monthly drop in Baltic dry index = BULLISH!
Who says there's no such thing as a free lunch?
Lol, not front page news at CNN:
http://money.cnn.com/2014/06/25/news/economy/gdp-negative/index.html?iid...
KEEP CALM
and
DON'T PANIC
"AND I'M THE PHUCKING TOOTH FAIRY BITCH!"
Of course it's negative!
Yawn :0
Stop reporting the lies.
No one is listening anymore.
Learn to throw the ball to first in order to gain some credibility.
Goldman says Q2 will be exceptional because Q1 was revised lower. So, what's there to worry about? Armaggedon, maybe?
It might soon become apparent the economic efficiency of credit is beginning to collapse and the additional money poured into the system coupled with lower rates can no longer drive the economy forward. At some point the return on loaning money is simply not worth the risk!
Why do you want to loan money if most likely you will never be repaid or repaid with something that is totally worthless? The collapse of credit can pose major problems such as what we saw when many sellers were forced to demand payment up front before shipping goods in 2008.
When this happens the only safe place to store wealth will be in "tangible assets" and the only lenders will be those who print the money that nobody wants. More on this subject below.
http://brucewilds.blogspot.com/2014/06/the-economic-efficiency-of-credit...
Once they adjust for all those"Will Work For Food" and "Impeach Obama" signs being produced, GDP should normalize
Incredible moves in the US futures here, /TF up 19 points from the low, US500 up 12 from the low, US Tech 100 up 33 from the low...didn't see that coming in that size
Is it just me or does it feel like the Tuesday buyer has switched days to Wednesdays?
Damn summer interns...This is what happens when the Truth Scrubbers go on vacation!!
How's the Buffett Indicator looking now with that stinker of a revision! It was already off the charts ... No matter, just keep buying...
hummm
Q2 GDP = 5.2%
Voila!
Tee Time Bitchez!
consider this more proof the economic recovery that the media and talking heads have been bantering around does not exist and is just a myth. A manipulated stock market distorted by recent economic policy hides and mask the real truth, in many ways it is ground zero in the war to convince us all is well.
The American people and Main Street will tell you they are far from convinced that it is smooth sailing ahead. Huge weakness in the economy has been shown by numbers that barely get by even after record amounts of stimulus. Fact is if QE or the massive government deficit spending that props up our economy is removed it will fold like a cheap umbrella.
Recent changes in how the GDP is figured , which boosted growth thus reducing the debt to growth ratio, and attempts to spin poor numbers regarding employment have been met with skepticism. More on this subject in the article below.
http://brucewilds.blogspot.com/2013/10/myth-of-economic-recovery.html
Just wait until you see what they do to avoid a consecutive (as in Q2) negative GDP print. Now that's entertainment!
Its shit
Its a depression
Stop lying to the people
Reuter's headline today after GDP report:
U.S. economy collapses in first quarter, but growing againQuit repeating lies.
Good thing they’re tapering. Surely the tapering ends in a month’s time though.
Are you aware.
US Q2 GDP Announced – July 30, 2014 (Advance Estimate)
http://www.bea.gov/newsreleases/news_release_sort_national.htm
US Federal Reserve – Next FOMC Meeting – July 29-30, 2014
http://www.federalreserve.gov/monetarypolicy/fomccalendars.htm
Same date. US in recession, surely that means an end to the taper in a month's time?
Just add all the hookers, blow, meth, etc. to the GDP.
Growth bitchez.......GROWTH!
If it takes two consecutive quarters of negative growth to make a recession is it not wise to put all the negative growth into a single quarter?
Shia leader's Hussein Obanana's administration and MSM talk about a MISSED 4casts(?!?!, well, politbureau used the same methodology to plan, like Chruscov's politbureau). Because it is only a -2,4%....
How will it look like, when they will talk about recession?
Minus 10% per quarter? Or even more?
lets take 10 %
right off the top, of the GDP
for inflaion ..
Everything you need to know about what just happened - in a single image http://3.bp.blogspot.com/_KPMHW1OQ7ug/TF4Rj0zXzyI/AAAAAAAAAcE/y-PcaVkOFI...
HIGH PRICED OIL DESTROYS GROWTH
According to the OECD Economics Department and the International Monetary Fund Research Department, a sustained $10 per barrel increase in oil prices from $25 to $35 would result in the OECD as a whole losing 0.4% of GDP in the first and second years of higher prices. http://www.iea.org/textbase/npsum/high_oil04sum.pdf
Connect the dots people....
The farce is strong with this one.