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Revised Q3 GDP Drops By 20% To 2.0%, Misses Expectations Of 2.5% By 2 Standard Deviations
So much for the miraculous inventory expansion. JPM's Michael Feroli was spot on: the strategist who predicted a significantly below par revised Q3 GDP print of 2.0%, was right on the dot. Advance GDP dropped from 2.5% to 2.0%, missing expectations of an unchanged print. The impact was entirely due to Inventories detracting from growth, with the Private Inventory number declining from -1.08% to -1.55%. And to those expecting a surge in Q4 GDP based on inventory restocking, which would be virtually all Wall Street economists who missed today's number by 2 standard deviations, we have one thing to say: it ain't happening. In fact, liquidations are coming first, fast and furious with Personal Consumption coming at 2.3%, and missing estimates. Needless to say futures, are not happy.
And this is why the lemmings get paid the big bucks, courtesy of Bloomberg:
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Does anyone really care about GDP? All I know is that I can look at Becky Quick instead of that horse-face Michelle Caruso-Cabrera.
" 'Zippy Banana Pants.' I kinda' like that name. Thank you for the compliment, Zippy ! I always love hearing from one of my three viewers."
http://img18.imageshack.us/img18/184/bq4c.jpg
The three: Zippy, Buffett, and - I need some help on the third. RobotTrader ?
Please don't take my words out of context. I said look at, believe me, the volume is muted. I might listen to Bloomberg radio during the day, but the idiots on CNBC, no way.
I was just getting tired of seeing horse-face strike a pose every morning. At times it was frightening.
It's hard to tell what Becky is saying since she has Warren Buffet's c*ck so far down her throat.
Was that out of line, ummm, sorry.
You really think he can still get it up?
Guess he took the blue pill.
Too bad the price index came in as expected.
Otherwise, we'd be hyperventilating about the QE3 trade by now.
Well there's still the FOMC minutes to keep that hope alive.
Gotta keep the no crash DEC tradition alive.
'Gotta keep the no crash DEC tradition alive.'
First time for everything.
You lost all credibility when you said "stocks follow the economy". Stocks do not follow the economy, they are a leading indicator of where the economy is going. Try again.
I think he lost all credibility when he said the following as his second and third post ever:
"I totally agree. Im actually amazed by all the conspiracy theorists out there. Bottom line, GS people(and I know many) are smart, savy, strategic and very forward thinking. I only wish I had the info they have when dealing with client orders. Theyre job is to deliver products their clients want, then they reduce the risk they have as a firm to those positions and hopefully, leverage this knowledge into investments that will benefit the firms shareholders, employeee's, and clients. All this anti-GS talk just wreaks of jealousy from people that don't have enough money to be a GS client. There I said it!"
http://www.zerohedge.com/article/exposing-story-behind-goldmans-record-profits#comment-229373
http://www.zerohedge.com/article/exposing-story-behind-goldmans-record-profits#comment-229375
I missed that, but yes, that would be enough to lose credibility right out of the gate.
"Bottom line, GS people(and I know many) are smart, savy, strategic and very forward thinking."
Hahahahahahahahaha.........gasp..hahahahahahahahahahaha.
These guys are the same kind of guys you will find at any used car lot. The same. They are not smarter or even vary fond of thinkng unless its how to get their numbers up.
Either your a mark or they will brag about how stupid their marks are.
Thanks for the morning laugh.
kick his ignorant ass, fuu!
the styoooopid troll won't STFU and is really testing the zeroHeads to see how many are brain-dead and will "register" to use his site
the very model perfected by ORI for his bosses and handlers--just pretend you're operating on faceFuk and make new "friends" who (like falak penis for ORI) will then act like you're cool and give you green arrows for cover while doing their own promotions, too (like falak penis and his fuking book hype)
like the celente trolls and most certainly celente himself, they have no respect for zH, it's freedom, and why it is what it is, today. they will do anything for personal publicity and to increase their web-site traffic; that is their only reason for being on zH!
I <3 you sir!
The reason it is a leading indicator is because large players that have access to information that you don't are making bets and moving the market. If you look at it that way, it becomes clear that it is just gambling and not investing.
Do you invest in financials and retail stocks? I have been investing in these sectors without much luck and could really do with some expert advice.
Ask me, I invest in retail stocks. In fact, my March puts on Lulu are looking very good right now.
Government bonds... investments in the unemployed and toxic asset sectors are growth opportunities.
Q3 debt grew by $447 Billion....Q3 GDP grew by $169 Billion. That is all people need to know about the 'health' of the US economy.
This is good, ...right?
I thought GDP did not matter. J. Cramer just said "buy and hold."
/sarc
Never mind. J. Cramer has returned to totally incomprehensible commentary. From "think long term" to "Euro bank failure" to "hyperinflation and buy gold."
The guy obviously needs Zanex injections every ten minutes.
I haven't access to a televison at present. Is a Post-it note with the letters "FMCN" affixed to Cramer's forehead ?
Nice numbers. The bigger one is larger than the smaller one, isn't it?
"Hey everybody! I have melanoma of the skin, lupus, gonorrhea, tuberculosis, herpes, cystic fibrosis, hypertension, cataracts, and diabetes, but I don't have a cold, so I'd say I'm pretty fucking healthy, bitchez!"
It is easy to get positive GDP by just adjusting the CPI. The lower we make it, the higher growth we have. And COLAs are lower too. Everyone wins except the truth.
And you may want to throw in the $1.5 trillion increase in unfunded liabilities which are politically impossible to elimminate.
With debt and unfunded liabilities growing so much faster than a massaged GDP, it is a wonder that everyone is rushing to the safety of US treasuries. More Bizzaro than Bizzaro world.
+1, Papaswamp. +1.
steve lies-man said its ok
Personal income sucks...people keep dipping into savings to spend.
Green shoots!! Sure!
Its hard to invest when the Government statistics are so wrong....this change from 2.5% which is almost growth to 2% which is still recession depression...is a big change....that run up in the stock market was on bad data....and people are going to lose money now because of it...all for a politicans speech
Last decemeber Goldman welcomed the recovery with a forecast of 2011 GDP @ 4% and a 10year @ wait for it............3.75%.
Perhaps there was a typo and they really meant the 30 year?
Of course i mock but they got 7 figures for that dart throwing exercise.
Using your avatar as fodder for my comment, consider that Goldman Sachs always plays the part of Lucy, setting up the football for Charlie Brown - i.e., the Amerikkkan people.
Then, Lucy does what she always does when Charlie Brown runs up to kick the football.
Works every time.
+1
"Santa has left the building"(his sleigh is empty). Inventories down, baltic dry down 20% ish y/y for October, presales since October stripping off the holiday sales. You can't sell what you dont have or what everyone already has and is not needed. No inventory here on which to build a santa rally...The best you can do is revenue increases from that thing we dont have.... starts with an I ...Inflation!
First he shone some light on the 60 billion per year squatter's rent situation, now he goes against the grain here. Ferolli is soon going to be out on the street. Maybe ZH should look at his resume. Oh, and it looks like Joe Lavorgna is starting to read ZH, he's a little closer to actual this time.
Keep pushing the rope... f**k while its flacid... and more futile methods of stimulation. GDP will not improve without growth "." And that is something the world does not have (on a net basis) any longer. Decade long Bear Btichez!
Still working on that economic model for infinite growth in a world with finite resources? Good luck with that.
Doh!
As if the GDP number was bullish to begin with. When was the last time real (inflation adjusted) GDP was positive? Anyone?
not sure, ok?
methinks it might have been 4Q'10 or 1Q'11
just b4 the tsunami and fuk_u, basically, IMO
actually, with the *inflation* numbers = bullshitskie, there is probably little agreement, but i think we have been negative for about 6 months, now, and w/ europa fully floundering in flanders, growth is highly problematic in the West
you won't hear that from the banksters, tho: just "positive" numbers from their "e-CON-you-miss" forecasters who NEVER seem to use the words "nominal" and "adjusted" (except for a select & intelligent few, like Rosie)
ZIRP is inflationary and just b/c the HOT money in commodities has gone in on the short side we're s'posed to believe that the benzelbub and his bubbas have "got inflation under control" b/c these prices are being forced down, now, by the same mechanisms that pushed them up a relatively short while ago
jeeeez! i may have been born at night, but...
So, BTFD, right?