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Revised Q2 GDP Prints At 1.0%, Below Expectations Of 1.1%, Down From Preliminary 1.3%

Tyler Durden's picture




 

The first revision to Q1 GDP printed at 1.0%, down from the preliminary Q2 GDP print of 1.3%, and as expected was worse than Wall Street consensus of -1.1%, although it was certainly not as bad as the miss to the preliminary number. Stone McCarthy's forecast of 0.7% is not necessarily wrong: it is probably just early: the final revision to Q2 GDP will come on September 29, one week after the next FOMC meeting, and will be the last sub 1% GDP growth number before we see a negative GDP print for Q3. Personal Consumption printed a little better than expected at 0.4%, higher than consensus of 0.2%. Alas, this number will be whacked massively in Q3. Core PCE was also slightly higher than expectations of 2.1%, coming at 2.2%. The components of the 1.0% revised GDP were: PCE: 0.3%; Fixed Investment: 1.01%, Change in Private Inventories: -0.23%; Exports: 0.41%; Imports -0.31%; and Government consumption -0.18%. This is the third consecutive quarter in which the government has taken away from growth.

Full breakdown below:

And here is why any rumors of a US recovery are greatly exagerated:

And here is Goldman's breakdown:

1. Q2 real GDP growth was revised down to 1.0% (quarter-over-quarter, annualized) in the second estimate, down from 1.3% in the advance report. The revision reflected a reduction in the contribution from inventories to -0.2 percentage points (pp) from +0.2pp previously. Final sales growth-GDP excluding the effects of inventories-was revised up to 1.2% from 1.1% in the advance report. Changes in the components were in line with our expectations. Consumer spending and business fixed investment were revised up, but net exports were revised down. Other components were close to unchanged.

 

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Fri, 08/26/2011 - 08:46 | 1603429 ShowMeTheTime
ShowMeTheTime's picture

The thump you just heard was the recession falling into line..

Fri, 08/26/2011 - 09:12 | 1603521 bigdumbnugly
bigdumbnugly's picture

or liesman's chin dropping

Fri, 08/26/2011 - 09:18 | 1603542 DUNTHAT
DUNTHAT's picture

This print gives bernanke a little cover to justify NO QE3.

Later will be revised nto neg .5.

Fri, 08/26/2011 - 08:47 | 1603430 Bohemian Clubber
Bohemian Clubber's picture

It will be revised subzero in a quarter anyway...

Fri, 08/26/2011 - 08:51 | 1603452 kridkrid
kridkrid's picture

Even the revision will be a lie. 

Fri, 08/26/2011 - 08:47 | 1603433 Debtless
Debtless's picture

Bullisht.

Fri, 08/26/2011 - 08:48 | 1603434 Archimedes
Archimedes's picture

Ah, a big nothingburger. Kind of like what I expect out of the Bernank in an hour or so....

Fri, 08/26/2011 - 09:02 | 1603490 SheepDog-One
SheepDog-One's picture

Big fence straddling waffle-fest....the Bernank LOVES being able to hold out the carrot on a stick without having to deliver a thing. 

Fri, 08/26/2011 - 09:08 | 1603509 Snidley Whipsnae
Snidley Whipsnae's picture

Ben said "I don't want no Stinkin Sub 1% Print before my speech"...

He has spoken and so it was done...

Who didn't see this coming???

Fri, 08/26/2011 - 09:06 | 1603503 Rothbardian in ...
Rothbardian in Cleveland's picture

That IS a tasty burger!  Vincent, ever have a Big Nothingburger?

Fri, 08/26/2011 - 09:16 | 1603533 knukles
knukles's picture

(Vincent shakes head no.)

Now that is just one of the finest fucking scenes in the film.  Right up there with Bruce Willis and Vig Rhames in the basement....

Fri, 08/26/2011 - 09:43 | 1603696 pods
pods's picture

"Do they speak english in what?!"

pods

Fri, 08/26/2011 - 09:51 | 1603741 WonderDawg
WonderDawg's picture

Say "what" again!

Fri, 08/26/2011 - 09:23 | 1603570 TuesdayBen
TuesdayBen's picture

nothingburgers suck

Fri, 08/26/2011 - 08:47 | 1603436 Gibu The Great
Gibu The Great's picture

At what point today will equities realize there is no QE coming (yet). 

Fri, 08/26/2011 - 08:48 | 1603439 slaughterer
slaughterer's picture

Probably never.

Fri, 08/26/2011 - 08:51 | 1603451 TheTmfreak
TheTmfreak's picture

For some reason I feel that they'll be able to spin it around to reinforce the bull.

"No QE means everything is great, so buy buy buy!"

Fri, 08/26/2011 - 08:57 | 1603471 Gibu The Great
Gibu The Great's picture

I don't think that is likely, but if they do I think they're going to have a hard time spinning next Friday's payroll numbers! 

Fri, 08/26/2011 - 09:16 | 1603531 Scalaris
Scalaris's picture

I actually think that MSM are perfectly capable of transforming whatever nonsensical fact, be it bearish or downright shit, into a glimpse of sunny bullishness. I specifically recall an instance from a few days ago when every single piece of news coming out was worse than the previous one, and I mean from a substabtial Chinese economy contraction to completely awful US economic indicators. Yet when the DOW initiated its full retard sequence, I actually heard Bloomberg's Matt Miller saying that the only "reasonable" explanation is that due to the storm of negative economic news, "investors" are taking their positions because it was more likely for Bernanke to announce QE3. (o_o)  

Fri, 08/26/2011 - 09:18 | 1603546 knukles
knukles's picture

Oh come on... that'll be Great For Inflation, the Fed won't have to tighten and stocks'll rally. 
Get With The fucking Program!

Fri, 08/26/2011 - 08:48 | 1603440 props2009
props2009's picture

I think that numbers are being managed to make grounds for QE3 if not now atleast in sept.

 

Charts on MS, GS  and BAC are in severe downtrend. No amount of data can alleiviate the pain and we will see QE3 if not now next month.

 

charts:

http://capital3x.com/?p=278

Fri, 08/26/2011 - 09:20 | 1603552 knukles
knukles's picture

Conspiracy or lies?
Which is worse?

Fri, 08/26/2011 - 08:49 | 1603441 kridkrid
kridkrid's picture

They rounded up.  Doesn't even matter what number they rounded up from... they were always going to round up to +1%. 

Fri, 08/26/2011 - 08:49 | 1603445 Dapper Dan
Dapper Dan's picture

We will see some growth starting next week, predominately in the debris hauling, and constructing industries.

 

Fri, 08/26/2011 - 08:53 | 1603458 cossack55
cossack55's picture

Gotta love that HAARP.

Fri, 08/26/2011 - 08:58 | 1603473 HelluvaEngineer
HelluvaEngineer's picture

It's also good with Guinness

Fri, 08/26/2011 - 08:56 | 1603466 Flakmeister
Flakmeister's picture

Don't laugh.... try and find a flashlight in Westchester....

Fri, 08/26/2011 - 08:58 | 1603475 LawsofPhysics
LawsofPhysics's picture

No, Irene is not that bad and will not do much.  Gonna evaporate as soon as it hits the cape.  The drought conditions in the Southest, just like in Texas are very bad and there is plenty of room on land in the vegetation to suck all the moisture out of this hurricane in a second.  This is a GOOD thing, several of my crops need the water desperately.  BRING IT.

Fri, 08/26/2011 - 09:05 | 1603500 Flakmeister
Flakmeister's picture

Up here in Westchester, we have had a historically wet August. The ground is completely saturated... There will be some serious flooding with 4-8"....

Fri, 08/26/2011 - 09:20 | 1603524 LawsofPhysics
LawsofPhysics's picture

Mark my words, Irene won't make it that far.  Send your water south. Several crates of Pecans in it for you if you can make it happen.

Fri, 08/26/2011 - 09:23 | 1603573 knukles
knukles's picture

I'm sorry, don't mean to be a tidge forward, but I can't resist.  Did you do a shitload of drugs as a child?  Did you ever stop?

Fri, 08/26/2011 - 09:27 | 1603587 Flakmeister
Flakmeister's picture

I hope you are correct.... but I try to follow the maxim that an ounce of prevention is worth a pound of cure...

I was in Halifax the week after Juan hit in 2003. Juan was a fast moving modest cat 1-2 that made a direct hit on the city. The city was devastated, partially because it had been ~100 years since a hurricane had landed in the area. Trees everywhere. Westchester is similar, lots of old dodgy trees waiting for a big gust. 

I would gladly send you the water, some golf courses here are soaked and almost unplayable... 

Fri, 08/26/2011 - 09:18 | 1603543 bankruptcylawyer
bankruptcylawyer's picture

the ground will suck it up? so you are saying a hurricane is not bad if it doesn't flood you out?

 

you might know laws of physics but lack those of common sense. i'm as cynical as the most about weather panic, but this thing is 90% to show up centered on new york city in 2 days, and 95% to hit the northeast generally. 

Fri, 08/26/2011 - 11:23 | 1604320 LawsofPhysics
LawsofPhysics's picture

First of all, fuck new york city.

Second, remember that hurricance (with actually MORE moisture than Irene) that hit Texas.

What happened?  Poof!  Gone.

 

"95% to hit the northeast generally. "  -  So NOW you are saying that weathermen are suddenly correct in all their predictions.

Talk about a LACK of common sense.

Fri, 08/26/2011 - 09:36 | 1603643 Esso
Esso's picture

Bullish demolition. Construction, not so much.

Fri, 08/26/2011 - 08:52 | 1603453 Cassandra Syndrome
Cassandra Syndrome's picture

The spread between the GDP deflator and the real inflation rate at least 5%, so in reality the economy continues to shrink by at least 4%. Depression since 2007.

Fri, 08/26/2011 - 09:00 | 1603470 hedgeless_horseman
hedgeless_horseman's picture

Indeed.  Way to cut through the bullshit.  Prestidigiflation FTMFW! 

Fri, 08/26/2011 - 09:01 | 1603488 Rothbardian in ...
Rothbardian in Cleveland's picture

BEA's calculation is a joke!!!!  The whole owner occupied rent concept is ridiculous.  How do they look people in the eye and say "there's no inflation" when people are standing in a freakin' store. 

 

Funny, but the Wiemar Republic did exactly the same thing.  As crap was spiraling out of control their current day ministry of truth was publishing statistics that everything was fine.

 

Sig Heil Bitchez!

Fri, 08/26/2011 - 09:09 | 1603515 Cassandra Syndrome
Cassandra Syndrome's picture

Also, Private investment is only up "officially" 0.15%. That's were recoveries come from, capital investment. What would Murray make of all this insanity if he was alive today, especially with all the internet access? He could see through the all the bull way back. Even wrote an amazing critique of the Chicago School, monetarism and Friedman way back in 1971 before it influenced policy makers. 

Fri, 08/26/2011 - 09:18 | 1603548 giocatoli
giocatoli's picture

Which Murray? Bill? Rothbard?  To which critique are you referring, as I am interested in reading such.

 

THX

Fri, 08/26/2011 - 09:27 | 1603594 Cassandra Syndrome
Fri, 08/26/2011 - 09:33 | 1603617 Rothbardian in ...
Rothbardian in Cleveland's picture

Bill of course.  The dissertation was post his 1971 arrest when he was advocating a move to the Cannabis Standard.  Sadly, after the confiscation of said herb, his theories were discredited by a sea of voices from the fiat crowd.  He fled the field of economics for greener pastures in entertainment to the regret of canna-numismaticists around the world.

Fri, 08/26/2011 - 08:52 | 1603455 gaijin
gaijin's picture

The corporate profit numbers were revised down 5% from prior and now stand at 0% year-over-year...would one expect this, in combination with GDP, to move markets sginificantly lower independent of Bernanke's speech?

Fri, 08/26/2011 - 09:27 | 1603584 knukles
knukles's picture

Oh fuck yeah!  Let's put a 70X multiple on that shit and stocks'll make that 100,000 DJIA projection in no time.

Fri, 08/26/2011 - 08:53 | 1603459 MFL8240
MFL8240's picture

What is the GDP number after REAL INFLATION?  Great job Obama, you are carrying out the Saul Alinsky plan to a tee.  Time now for amnesty to push what is left of this economy over the hill.

Fri, 08/26/2011 - 08:56 | 1603469 Esso
Esso's picture

"What is the GDP number after REAL INFLATION?"

I make it at about -15%, but I've always been hopelessly optimistic.

Fri, 08/26/2011 - 08:53 | 1603460 PulauHantu29
PulauHantu29's picture

Better then expected. Remove military spending and conumser spending and you get how much?

The most important figure, cap investment, is zilch.

Fri, 08/26/2011 - 08:55 | 1603462 El Gordo
El Gordo's picture

Forget all the fundamentals and analysis.  All you need to know is that I just hit the send key on my buy order and it's already down $.50.  When I buy, it's time to sell.

Fri, 08/26/2011 - 08:58 | 1603474 --Freedom--
--Freedom--'s picture

Depends what you're buying.

Fri, 08/26/2011 - 09:09 | 1603513 props2009
props2009's picture

thats funny. suggest wait for the Bernanke speech which may include QE3 or atleast a mention

Fri, 08/26/2011 - 08:55 | 1603463 Rothbardian in ...
Rothbardian in Cleveland's picture

The sequel to the Summer of Recovery is sooooo much better than the first one.

Fri, 08/26/2011 - 09:00 | 1603484 dwdollar
dwdollar's picture

Another summer, another sputter...  Maybe next time.

Fri, 08/26/2011 - 08:55 | 1603464 LawsofPhysics
LawsofPhysics's picture

To be re-revised to 0.8 %, 0.3%, -1.2 %  Blah, blah blah.  Go be productive people.

Fri, 08/26/2011 - 08:55 | 1603465 docj
docj's picture

Growth shrinking, inflation rising. Hello Stagflation... Nice to see you... It's been a long time...

You know that Paulie Krugnuts has to be quietly hoping that praying that Irene does enough damage that it can somehow unleash that much hypothesized, but never seen, "multiplier effect" in Fed.Gov stimulus spending. Because hurricanes can be very bullish, you know.

Fri, 08/26/2011 - 08:59 | 1603479 Caviar Emptor
Caviar Emptor's picture

If this were stagflation like in the 1970's you'd still have 5% GDP growth. THis is something different. When the next revision comes in it will become clear that real growth is negative. Also during the 1970s you did not have such sustained and high levels of unemployment. Again, it's a different animal 

Fri, 08/26/2011 - 09:06 | 1603505 docj
docj's picture

Excellent points. This is shaping-up to be not only different, but much, much worse.

So much so that we might be looking back longingly at the Carter Years (but not, I hope, The Disco Crisis) before too long.

Fri, 08/26/2011 - 09:15 | 1603527 Rothbardian in ...
Rothbardian in Cleveland's picture

Well at least we got Three's Company, CHiP's, and The Jefferson's out of the Carter years.  It wasn't a total waste.

Fri, 08/26/2011 - 09:29 | 1603599 knukles
knukles's picture

And we get "Movin' on up to the West Wing"
Just say no 'cause some shit's never safe

Fri, 08/26/2011 - 09:19 | 1603538 Bob
Fri, 08/26/2011 - 09:22 | 1603566 docj
docj's picture

Ugh. Now I have to reach for the lye soap and wire brush.

Thanks a ton.

Fri, 08/26/2011 - 09:56 | 1603761 Caviar Emptor
Caviar Emptor's picture

I agree. Those will be the good ole days. At least incomes were rising

Fri, 08/26/2011 - 09:02 | 1603493 Rothbardian in ...
Rothbardian in Cleveland's picture

Ladies and gentlemen....Mr. Conway Twitty.

Fri, 08/26/2011 - 08:56 | 1603467 oogs66
oogs66's picture

someone has to compile a good list of all the politicians and fed and treasury secretary's comments saying how all is good

 

Fri, 08/26/2011 - 09:11 | 1603519 SheepDog-One
SheepDog-One's picture

Ive seen that chart of various statements about how great things are, the worst is behind us, the futures so bright we gotta wear shades...before and during the great depression plunge.

Fri, 08/26/2011 - 08:57 | 1603472 Caviar Emptor
Caviar Emptor's picture

And as I've predicted, the Fed is boxed in to a perfect Biflationary trap: GDP sinking, core PCE rising (now above it's 2% target). Beautiful. You can thank QE and other reckless monetarist delusions. 

Fri, 08/26/2011 - 10:53 | 1604179 MachoMan
MachoMan's picture

So what is the FED going to do about it?

Fri, 08/26/2011 - 08:59 | 1603478 SheepDog-One
SheepDog-One's picture

GDP...what is it really made of anymore except ZIRP free money printing 'product'?

Fri, 08/26/2011 - 09:16 | 1603532 Esso
Esso's picture

There's unlimited upside potential in hat production. The pictures of the last depression showed a sea of hats in the breadlines. Everybody had a hat.

Go long hats.

Fri, 08/26/2011 - 09:00 | 1603481 ArkansasAngie
ArkansasAngie's picture

The problem with the problem is ... we are given soultions in the form of either/or -- QE3 or not.  Door number 3 please Vanna.

We need to get creative with door number 3

I'm afraid that any solution will call for new management in Washington and on Wall Street.

Fri, 08/26/2011 - 09:15 | 1603528 Yes_Questions
Yes_Questions's picture

<---Replace Wall Street (Senior Management) and Washington (Middle Management

<---Replace their owners (The Board)

The fish rots from the head first.  Capital and the Capitol answer to neither you our I.

Its not the way it has to be.

 

+ArkAng

Fri, 08/26/2011 - 09:00 | 1603482 oldmanofthesee
oldmanofthesee's picture

Obama has one thing to be grateful for. That we do not have a parlimentary form of govt. Had we, he could not survive the no-confidence vote. He is the biggest drag on our economy.

Fri, 08/26/2011 - 09:00 | 1603483 lizzy36
lizzy36's picture

And Potus is going to teleprompt at 11:30am (hurricane).

Maybe we can hit the Bernake put strike price (950-1000 S&P) today?

Fri, 08/26/2011 - 09:05 | 1603499 anynonmous
anynonmous's picture

and it will be an effing cat 1 or less by the time it hits (what are the odds he takes a Libya victory lap during his remarks) and narcissist that he is,  comments on how he too will be in harms way in the Vineyard

Fri, 08/26/2011 - 09:01 | 1603487 anynonmous
anynonmous's picture

I'm listening to Kotok on Bloomberg (what a knob)
He's spouting the same crap as the NYT
Reduce the underwater "homeowners" by allowing them to refinance with no discussion of who pays.

Kotok fully invested and blames the GDP 100% on the Japan quake, he sees 3% GDP in h2.

He also pronounces Hurricane as Hairiane and worships at the alter of the Buffett.

 

(didn't ZH used to publish stuff from Kotok?)

Fri, 08/26/2011 - 09:03 | 1603495 Caviar Emptor
Caviar Emptor's picture

They indeed are planning a massive underwater homeowner refi package that was announced at the same time Buffett bought his shares of BAC. Cute. 

Fri, 08/26/2011 - 09:06 | 1603502 SheepDog-One
SheepDog-One's picture

So in other words another 12 months free rent for millions of mortgage squatters?

Fri, 08/26/2011 - 09:25 | 1603512 docj
docj's picture

Yep.

And that's, of course, bullish.

Fri, 08/26/2011 - 09:09 | 1603511 anynonmous
anynonmous's picture

has anyone written something on the implications of such a program as in who pays, who wins, who loses etc.

I posted in the other thread how the canning of Schneiderman is likely a quid pro quo for the banksters with Buffy as the frontman

Fri, 08/26/2011 - 09:17 | 1603536 Sancho Ponzi
Sancho Ponzi's picture

The O-Team is working hard to keep the debt slaves shackled to their houses. The problem is most of the folks who really need help have stopped paying their mortgage and are living rent-free, and many of those are unemployed. A lower mortgage payment accomplishes nothing.

Fri, 08/26/2011 - 09:24 | 1603572 Bob
Bob's picture

Except, as you say, keeps debt slaves shackled to their houses. 

Fri, 08/26/2011 - 11:10 | 1604282 MachoMan
MachoMan's picture

Even if they get another shot at actually following rudimentary property law, don't be so sure they'll actually get it right...  the biggest problem is that the paperwork requires attention to detail, some training, and some common sense...  and the people performing the work are void of the requirements.  They simply don't have the money to ensure all of these items are done correctly...  if MERS was created to save nickels and dimes on the transactions, how the shit are they going to pay attorneys to clean up EACH one?

The refi option is simply there to avoid legal fees and give the issuer some refi charges, while arguably clearing up the previous chain of assignment...  it's simply the best option for the banks...  for whatever reason, they think indigents are going to go along with this crap...  

They might and I mean might get some nibbles for significant principal reductions...  but other than that I can't see any material number of people jumping at the chance...  (and why would anyone in a nonrecourse state even think about doing anything other than living there rent free and turning the keys in if pushed?).  Seems pretty desperate...  but, they haven't quite figured out that when people have no alternative, they can't play the game anymore...  while I might have made many bad purchasing decisions before, I have no options at this juncture and have been slapped in the face with reality (realty) in the meantime.  Once bitten, twice shy.  And, practically speaking, it's pretty tough to make a fruitful offer when your competition is offering payments of $0/mo.

As usual, credit worthy borrowers are flipping the bird.  I just don't see who this could possibly be directed towards other than creditors...

Fri, 08/26/2011 - 09:01 | 1603489 Caviar Emptor
Caviar Emptor's picture

With these numbers, it's unlikely Bernank will do much on the monetary side today except "monitor the situation and intervene as needed". 

What they're going to do is roll out a gaggle of new fiscal stimulus programs: a housing/mortgage package, a jobs bill, and an infrastructure bill. 

Fri, 08/26/2011 - 09:20 | 1603551 Yes_Questions
Yes_Questions's picture

 

 

Bernanke could intervene in 15 minutes, whats the rush?  After all, the masochists are not through with us yet.

Fri, 08/26/2011 - 09:02 | 1603491 youngman
youngman's picture

Hurricanes are off balance sheet expenditures.....and no politician will vote against aid in a hurricane...I think the Pols will start spending early next year to buck it up for the elections...3-4 months of gains will show the voters all things are good...wink..wink...vote for me....

Fri, 08/26/2011 - 09:02 | 1603492 Moneyswirth
Moneyswirth's picture

Clearly the downward revision in GDP was because of the anticipation of the hurricane.  And earthquake. 

Fri, 08/26/2011 - 09:03 | 1603494 Racer
Racer's picture

QEasy money done wonders for the economy hasn't it... and they want more?

Fri, 08/26/2011 - 09:04 | 1603498 SheepDog-One
SheepDog-One's picture

Another 'within the margin of error rounding' data point....hell these people can say what they want. Does anyone really assume any of these numbers have any honesty in them at all?

If it served their purpose, they could have come out and said 'GDP up +5%' and what would anyone do about it? Nothing, thats what.

Fri, 08/26/2011 - 09:05 | 1603501 GCT
GCT's picture

I imagine Krugmann is hoping for alot of death and destruction right now to stimulate the economy and create jobs.  Morbid jerk!

Fri, 08/26/2011 - 09:08 | 1603510 SheepDog-One
SheepDog-One's picture

I dont know, people talk a lot about Krugman and these other jabberjaws, I dont have time to waste listening to any of these bullshitters. And when you dont listen to them, you realize you havent missed anything.

Fri, 08/26/2011 - 09:06 | 1603504 Caviar Emptor
Caviar Emptor's picture

Negative real growth (contraction) AND rising input costs. 

That's Biflation, baby! 

Lotsa Luck, Mr Bernank. 

Lotsa Luck, Mr and Ms consumer. 

Fri, 08/26/2011 - 09:10 | 1603516 props2009
props2009's picture

new trades for today:

http://capital3x.com/?p=289

 

Short S&P left right and center. trades with analysis.

Fri, 08/26/2011 - 09:10 | 1603517 sudzee
sudzee's picture

Interesting. How does an economy go into recession with real interest rates below zero. " the circle jerk of fiat" has to stop here as lending by the banks to stimulate the economy will endure massive losses as the the FED backstops the banks with zero percent loans and the banks lend into the economy at less than zero rates. Rat eating its own tail to survive a few more days.

Fri, 08/26/2011 - 09:11 | 1603518 vast-dom
vast-dom's picture

So by Sept.29 we should be in a fullblown recession?

Fri, 08/26/2011 - 09:14 | 1603526 digalert
digalert's picture

Good thing the mighty Barama created a hurricane. Rather than a dismal economy, NBC (official state controlled media) can focus on the damn Irene. Already mouth foaming, the keynesian's dream of the gazillions in infrastructure spending (grift) they can impose.

Fri, 08/26/2011 - 09:16 | 1603534 Surly Bear
Surly Bear's picture

Advertising has us chasing cars and clothes, working jobs we hate so we can buy shit we don’t need. We’re the middle children of history… No purpose or place. We have no Great War. No Great Depression. Our great war is a spiritual war… our great depression is our lives.

Fri, 08/26/2011 - 09:18 | 1603541 Moneyswirth
Moneyswirth's picture

Yes the government is indeed planning another massive housing plan to help homeowners refinance their homes, in which they currently have no equity, to take advantage of low rates.  These people will then refinance, take out some equity (CA-CHING!) and will be able to buy more iCrap and more Hot Pockets so they can comfortably watch their reality shows and ramp it up for the holiday season.  I mean, its a no-brainer that people people earning $30K a year should have several flat-screen TVs no? 

It's a win-win for the economy going forward...

Fri, 08/26/2011 - 09:24 | 1603578 LawsofPhysics
LawsofPhysics's picture

And the end of the dolar.  Gold to the moon.  But then again, specialized economies do what they do best and Americans know how to buy crap, so be it.  Good luck sustaining that.

Fri, 08/26/2011 - 09:18 | 1603547 Rothbardian in ...
Rothbardian in Cleveland's picture

Well, it's only going to get worse from here.  Irene has been renamed to hurrican George W. Bush.  When Bush hits the coast and does dammage it will get blamed for the next "miss".

Fri, 08/26/2011 - 09:29 | 1603600 Moneyswirth
Moneyswirth's picture

Heard on Bloomberg that no way the Bernank "front-run" the President by putting forth ANY plan that will help the economic situation.  So the geniuses at the central bank have to volley the imminently exploding hot-potato to Barack Obama, organizer-in-chief.

God help us all...

Fri, 08/26/2011 - 09:48 | 1603717 Broomer
Broomer's picture

I'm shocked to see that somehow, magically, it didn't print under 1.0%.

Fri, 08/26/2011 - 09:50 | 1603729 Madcow
Madcow's picture

what up with the ben bernanke nazi salute on bloomberg ?

http://www.bloomberg.com/

 

Fri, 08/26/2011 - 09:57 | 1603765 whaletail
whaletail's picture

The print prices in projected decline from bad weather on the east coast. It is prospectively pessimistic and provides for a high-chance of surprise to the upside for next quarter.

/closes spin doctor app on iphone

//browses for porn

Fri, 08/26/2011 - 10:21 | 1603962 jakethesnake76
jakethesnake76's picture

Well atleast the Central Banks can get us out of this mess, unless that Greek thing doesn't work out , or Ireland or , wait is this really working???

Fri, 08/26/2011 - 11:36 | 1604395 Jumbotron
Jumbotron's picture

Subtract 2.5% for government spending from the 1.0% print and you get the real organic, private sector GDP number.

-1.5%

Recession bitchez !

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