Charting Q1 GDP Pre And Post The 80% Downward Revision

Tyler Durden's picture

It's a good thing the BEA has two revisions to its GDP data or else someone would think that the government is purposefully fudging data. Below is a comparison between the Final Q1 GDP, which was released on June 24, and today's epic Q1 re-revision. From 1.9% to 0.4% in one easy Qe3 enabling step.

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rokakoma's picture

So, actually, per capita Q1 was a recession, since population grew more than 0.4% during the period.

wisefool's picture

snark:

No. Obamas actions prevented a slide back into recession. That is what happened these numbers will be revise after this revision.

Version 7's picture

Not actually. 'Capitas' nowadays are in short supply.

Cash_is_Trash's picture

May we PLEASE bury Keynesianism now!?

GeneMarchbanks's picture

Not until Krugman can be found in the Comics section of your daily newspaper.

Cash_is_Trash's picture

Kruggy's a clown, but I do suppose clowns aspire to being in the newspaper funnies.

Byte Me's picture

Nothing wrong with Keynesian stimulus -- provided it's done in moderation and unwound "later".

The problem is with the wankers that climb the greasy pole to get their hands on the levers of power and think they can do the K-shuffle for decades. And you can't stimulate out of a Depression until the debt has been unwound anyway.

So there...

Cash_is_Trash's picture

Nothing wrong with Keynesian stimulus

Pardon me, but there is everything wrong with stimulus. Government expenditure causes malinvestments which eventually collapse.

provided it's done in moderation and unwound "later"

The bureaucrats can't be trusted with moderation or any degree of responsibilit. Also, there is no later, these people will always kick the can down the road.

Only a free market with non interventionist principles removes all the bullshit you have just preached.

narapoiddyslexia's picture

And therein lies the problem, the bureaucrats [by that I hope you mean the elected prostitutes and their lackeys] are controlled by the banks and large corps.

No matter what system we have, it can always be perverted by these people, and it will be if there are not term limits and criminal penalties for monetary donations to politicians, of any kind, from anywhere.

The US Supreme Court has granted constitutional rights to paper entities, thus making a laughingstock out of the Constitution.

 

 

imapopulistnow's picture

In recession while QEII was still in effect.

tempo's picture

I remember how good it felt in 2005 during the subprime housing boom when everyone refinanced every 6 months lived like kings. Now its hell. I remember the wasted trillion + stimulus and QE1 and the $600 billion QE2 when the DJIA moved higher and higher. Its going to be hell for many years.

Fedophile's picture

Open the door to QE3? Oh right, because QE2 was so successful at boosting growth.

baby_BLYTHE's picture

QE(s) were never about growth. If the FED wanted growth, they would have been better simply handing out the money to the consumers to spend. The FED doesn't work for the American people, only for a select few bankers.

QE was all about keeping the banks flush so they could continue to rape and pillage the world economy. 

Bob's picture

We're in trouble now--bankster bonuses were paid in Q1.  Looks like we need to increase the bonuses to stimulate some real growth!

Cash_is_Trash's picture

bonuses to stimulat some real growth!

We need them to have more money, so that the wealth may trickle down to the lower rungs.

mickeyman's picture

Time to go long caviar and big yachts!

caerus's picture

bah...you can prove anything with numbers.../sarc

Debtless's picture

All that crazy money being spent and this is the best we could do? 

101 years and counting's picture

no QE3 while oil is over $80.

that is all.

rdenner's picture

I know there will be 100 snarky/funny comments after mine.. But this is UTTER BULLSHIT..... How the hell can they F*** up by a full 1.5 basis points.. Are you kidding me...

 

Either they lied then or they are lying now.. Could this be a move to tank the markets(meaning GDP is actually higher and they are lying now) and get the GOP/Tea Party on board with a QE3/Budget increase.. WHICH = RALLY ON later on today??

Robert

slaughterer's picture

Government reports = market-controlling government weapons.  They only have a strategic value, no truth value.  Watch the debt deal now go through on fast track as all politicians finally compromise for the greater good of the nation.   As for Bernanke, he still cannot launch QE3, even on the basis of these horrible figures.   More is needed, and more will be provided.   

NumNutt's picture

Who knows, to me at this point in the game this exercise is more like rearranging the deck chairs on the Titanic. 

buzzsaw99's picture

So close. You almost nailed it to a T. Here is where you erred:

Either they lied then or they are lying now...

Should have read:

They lie every time!

 

 

monopoly's picture

rdenner, I think the number is correct, you are really giving these idiots too much credit that they could manipulate this then change it for what they want. They are not that smart.

midtowng's picture

Not only did they k*ck up by 1.5%, but that 1.5% made it through a revision BEFORE this final revision.

desihedge's picture

Cant we just blame it on the weather?

GeneMarchbanks's picture

Shouldn't the 0.4 chart be much smaller in comparison? Maybe they think that people don't look at the numbers anymore just sizes, kinda like Big Macs.

bob_dabolina's picture

Cramer just rec. deep in the money calls for unsophisticated investors. 

You know it's gettin' bad when they throw Cramer on first thing in the morning

The following is a good start for the unsophisticated investor looking to hit a fair price on call options:

http://en.wikipedia.org/wiki/Black%E2%80%93Scholes

Cdad's picture

Good lord, how long before COMCAST finally pukes out its decision to put that guy on in the morning?  

**LOL!  Cramer just got on board with the plan for the Fed to sell its gold to pay the bills of th profligate.  Excellent!**

hedgeless_horseman's picture

I agree with your observation.  If Cramer says, "The Euro is fine," then we are loading the ark with two shares of every stock.

bob_dabolina's picture

Melissa Lee just raised the stakes on Cramer and said maybe it would be better to sell puts!!! 

This shee-iite is riiich. 

They are really trying to give the unassuming public a good fleecing.

Sell Puts!!!! Buy Calls!!!! Fuck it, throw on an iron condor, or a butterfly spread, it's so easy a baby could do it.

When are they gona' rec. short selling the box to help people with their taxes?

smlbizman's picture

did you see the number he tried to do to congressmen heulsma......telling him he is wiping out everyones wealth because he won't comprimise....a bat to cramers bald head seems a good fit....

youngman's picture

He grilled some Republican congressman this am on what the was supposed to tell his callers on his show who have lost money today because we have no debt deal......it was really bad the way he attacked him...like he is the stock god for the sheeple....I was thinking he should tell them that HE...Cramer the mouth lied to them...by telling them to buy stocks in this financial charade....it was a fake market...we know it...he should have told his listeners that he is the liar...and told them to buy gold....but then again he is an idiot...its over..Apple the toy maker has more cash than the US government right now.....does that mean anything to anyone....

pepperspray's picture

Our soft patch just turned into a plugged toilet

nodhannum's picture

Yes, and the turd is in the white house...and in both houses of CONgress.  We need a Roto Rooter and some Draino Quick.

Dr. Engali's picture

Shit if it wasn't for inflation that number would be negative.

rdenner's picture

^^^^^^^^^

Captain Obvious FTW.. Had to give you a bump for that one!!

 

Robert

Barry McBear's picture

Obama decided to let a little truth out.  Interesting timing.

depression's picture

Yes this data should spook the TP. Fortuitously Reid decided to advance his bill in the Senate today giving the TP a way to save face. TP has an ultimatum now, either vote for Reid's senate "grand compromise bill" or Obama will invoke the 14th Amendment on Sunday night and its game over. Nice try TP dimwits.

fuu's picture

Why would it spook the Tea party? This data shows that spending does not equal growth.

Cdad's picture

Time to arbitrage the dumb asses rushing into the long bond.

**Cramer is pounding the last nail into the coffin of his career.  He is joining the bandwagon of criminal syndicate Wall Street bankers blaming the Tea Party for the mess we are in.  Excellent.**

oogs66's picture

seriously, how can such a late revision be so big?  what the heck happened?

Cdad's picture

Fascism happened.  Or Marxism.  Take your pick.

slaughterer's picture

Gov needs a cattle prod for the debt ceiling agreements.  That is all.