Goldman Cuts Q2 GDP Estimate From 2.0% To 1.8%

Tyler Durden's picture

Just as predicted earlier, the GDP downgrades begin.

We revised down our Q2 GDP tracking estimate by two tenths to +1.8% (quarter-over-quarter, annualized) from +2.0% previously. The downward revision primarily reflects weaker-than-expected real export growth in April. This was partly offset by stronger than expected wholesale inventories, which increased by 0.6% (month-over-month) in April.

Surely this explains why the market is about to turn green.

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xtop23's picture

Weaker than expected. Really.


ihedgemyhedges's picture

I beat two of them now............and my posts are free!!!

Fri, 06/01/2012 - 14:12 | 2485094 ihedgemyhedges

Vote up!

Vote down!


JPM, slow as usual.  I posted hit to GDP after ISM export/import numbers came out...............but oh yeah, they have to run it thru their model......what a joke.

Fri, 06/01/2012 - 10:18 | 2483929 ihedgemyhedges

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Imports flat, exports number big drop.  Dollar strength going to tank GDP...............


NotApplicable's picture

In other news, Goldman cuts QE estimate in order to bring on just enough pain to ensure TPTB will have the "mandate" to implement it later.

Film at 11.

FlyoverCountrySchmuck's picture

Well, at least now we know what the purpose of Obama's "NOT-MY-FAULT! BUSH'S FAULT! EUROPE'S FAULT!" dog-and-pony show was today....

Setting the stage for Obama to bail out his big banker owners again with your money, while promising FREE OBAMA MONEY, FROM HIS STASH! to his base voters.

VulpisVulpis's picture

Is it opposite day?

Killtruck's picture

I will not be deterred. That QEIIIIII is on its way. Eventually.

No way out for the Bernocide.

battle axe's picture

And of course this does not take in to effect the Euro situation. 

NotApplicable's picture

To be honest, quantifying the effects of skittle-shitting unicorns requires skill sets we've yet to develop.

Oh regional Indian's picture

NUMBers and more NUMBers.

By making these "fine" adjustments, perhaps they have people fooled into thinking that they actually have a handle on this shit.

If only people had longer spans of attention and deeper memories...


Fred Garvin's picture

Spans of what? I was distracted by something shiney

junkyardjack's picture

Obama mentioned discussions so markets go green...

bnbdnb's picture

I'm beginning to think retail is gone...

LawsofPhysics's picture

By the time GS tells you anything, the information is less than useless.  Same as it ever was.

deerhunter's picture

Economy is bad because we are laying off teachers and cops.  Cops who in the NW suburbs of Chicago average 90K a year and pensions of 85% of last year of active works salary for life.  Hmm,  not a bad gig I think.  No layoffs here either. 

HD's picture

What if Ben has bigger concerns than holding the S&P at 1400? What if the central banks (who have been keeping it in their pants you may have noticed) are no longer concerned with the "wealth effect" and are half panicked preparing to just hold the system together at all costs?

junkyardjack's picture

The real problem is QE only works when people think there is a brighter future ahead.  When all of the high growth BRIC nations are collapsing where will the growth come from?  Companies have given up on the US and Europe and look to emerging markets as their savior but all of those nations are being pulled down as well.  To pull the QE trigger now would be insane because in a few months when reality strikes the emerging markets there will be a huge crisis and at that point Ben would want to hit the QE button not before, it will at least give the market hope that QE would do something a collapse right after a QE announcement is going to be complete chaos.

Cognitive Dissonance's picture

"Surely this explains why the market is about to turn green."

Green is good. Red is good. Black and blue is good. Get with the program slave.

NotApplicable's picture

And as I learned in boot camp in San Diego; pain is good, extreme pain, is extremely good.

potlatch's picture

Is that anything like Fat Camp?  Cuz those are hard, NO WAY would I want to do anything like that.  That Jillian is  B I T C H pardon my French!

dracos_ghost's picture

I'm surprised GS didn't phrase it "We see GDP going from 2% to QE3"


eclectic syncretist's picture

The market turned green so that they could run a green ticker below Obama's blusterings about how we're all going to have to suffer to keep the banks wealthy and out of jail where they belong.  Don't you know how the game works yet.


Now that he's done talking they'll let it go red again.  Not to worry.

potlatch's picture

They really do think they are just going to be able to shuffle these numbers until the end of time, you realize?  Until actual zombies create some actual, non-hedgeable zombie exposure to their fortress liquidity and fortress funds and fortress faces, they really do think, they can just shuffle these numbers forever and ever.

youngman's picture

"a controlled glide path"....that is down in my flight manual....