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Summary Of Kneejerk Wall Street Responses To Latest GDP Disappointment
The soundbite response from Wall Street on the latest GDP disappointment is, as expected, decidedly not bullish. Courtesy of Reuters.
NICK KALIVAS, VICE PRESIDENT OF FINANCIAL RESEARCH & SENIOR EQUITY INDEX ANALYST, MF GLOBAL IN CHICAGO
"It's obviously on the lower side of expectations, so it's a shade disappointing, but it's really old news. Given the Bernanke speech today and where we are in the economy, the markets are looking forward they are not looking back. It's all about what is back to school like, it is more about the future than it is what we saw in that quarter."
"As we sit here now we are a little bit lower than where we were prior to the report so it might be applying some light pressure just because it is another kind of disappointing data point. But I don't think it's really lasting, people are focused on what Bernanke is going to say and to some degree trying to figure out how bad this hurricane is going to be and what that means for how people position. Just the chance the East Coast isn't at full speed Monday is a possibility so that too might be playing a little bit of a role on how markets react. That too could also have an impact on how people perceive growth for this quarter." TOM PORCELLI, U.S. ECONOMIST, RBC CAPITAL MARKETS, NEW YORK
"It doesn't change much for us from a fundamental perspective. The consumer still barely had a pulse in the second quarter.
"The bulk of the revision was based on downward revisions to inventories and trade.
"The market here is so focused on ten o'clock, we've put this data in our rearview mirror."
PAUL BALLEW, SENIOR VICE PRESIDENT AND CHIEF ECONOMIST AT NATIONWIDE INSURANCE IN COLUMBUS, OHIO
"It's right in line with what we expected and the stall we saw in the first half of the year. We were expecting a bit of a downward revision, which reflects the headwinds on the recovery and all the factors we're trying to wrestle to the ground. Two years into the recovery we're still trying to get to pre-recovery levels."
"We're expecting that things will be marginally stronger in the last part of the year...The question is are we looking at a fourth quarter recovery?"
SEAN INCREMONA, ECONOMIST, 4CAST LTD, NEW YORK:
"The headline number is disappointing. You don't want to see these numbers revised downward. You had an upward revision in consumer spending, which goes along with that retail sales number we saw earlier this month, and business investment came up a bit, so those two are the positive aspects to the report. Net exports and inventories look like where the brunt of the downward revision came from. Overall it was still in line with this very soft recovery so you are not going to take much optimism out of these numbers."
WILLIAM LARKIN, PORTFOLIO MANAGER WITH CABOT MONEY MANAGEMENT IN SALEM, MASS
"GDP was in the gray area. It was ugly, but not a disaster. Had it been under 1 percent we'd have more of a psychological reaction, but it was too close to expectations to move the market ahead of Bernanke. It's in the neutral zone. Now the attention turns to Jackson Hole."
VIMOMBI NHSOM, ECONOMIST, IFR ECONOMICS, A UNIT OF THOMSON REUTERS
"Revisions have estimated that the amount of goods and services produced in Q2 grew at annualized pace of 1% from Q1, down from earlier Q2 GDP growth estimate of 1.3%. The downward revision of 0.3% was more or less aligned with market consensus, which assumed that the impact of a widened trade deficit and inventory drag would pull growth down to 1.1%. Upwards revisions from sources like consumer spending (entirely services) and investments (nonresidential and equipment/software) helped to negate the magnitude of the smaller growth estimate. Consumer spending contributed more to GDP than previously thought (0.3 percentage points), having risen 0.4% in Q2. Although better than the first estimate of 0.1%, spending is not even a fifth of Q1's growth (2.1%) which shows just how deep the temporary Q2 headwinds curtailed buying power and appetite (revisions to DPI report Q2 growth of 1%, which is a slowing of 1.2% in Q1)."
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with that sort of response, they can probably squeeze a few more pigeons between the seats on the titanic.
I thought algobots are bullish by nature.
What do you call that?
Puce.
PAUL BALLEW, SENIOR VICE PRESIDENT AND CHIEF ECONOMIST AT NATIONWIDE INSURANCE IN COLUMBUS, OHIO
"Two years into the recovery we're still trying to get to pre-recovery levels."
Mr. Ballew, with all due respect, you are a fucking moron.
Popcorn is ready! Bring on the circuses!
What about the bread? You can't have circus without bread.
I also brough a few bottles of cola, which we can use if anybody need to take leak.
WE WON'T MISS A THING!
bushmills & coffee
QE central planning has failed, no matter how much these people want to dance on the head of a pin we're in depression, and no amount of further intervention can reverse it.
Now imagine what the real conditions would be if the total intervention and manipulation and ZIRP was ended.
Really bad for about 6 months, and then really good for about 10-20 years. It will never happen.
I think more like really bad for 10-20 years, then goodish. A total systemic collapse will take longer than 6 months to heal from, don't you think?
Unless someone discovers, like I have, the secret to the Elixir of life. ;-)
BeWake
well it does...
#"It doesn't change much for us from a fundamental perspective. The consumer still barely had a pulse in the second #quarter.
ACTUALLY PHRASE SOUNDS LIKE THAT "US FED GOV SPENT ALMOST 15% OF GDP AND ALL THEY GOT IS T-SHIRT
SAYING 'consumer still barely had a pulse'"
ALX
And to top it off, the t-shirt was made in China.
good one
And will be on the credit card forever accumulating interest.
"Had it been under 1 percent we'd have more of a psychological reaction, but it was too close to expectations to move the market ahead of Bernanke."
Rest assured, numbers will be revised downward to print sub-1%.
Semms to me they should focus more on the economic hurricane than on Irene. Irene will come and go, this financial mess is here to stay, compliments of Greenspan, Geithner, Paulson, Obama and Bernanke.
you think Obama is even in game? Even in the parking lot of the ballpark? Please. Add in Jamie and Lloyd, ....Barack got told way back when he walked into office to go to the back of the bus and shut up.
Sorry, you are right. I detest Blankfield and Dimon so its hard for me to write about them, I blank them out and hope they get caust in the eye of the hurricane.
Banks have been controlling the direction of this nation since Kennedy was assasinated.
Strange how the last two presidents who suggested, and started to implement using a debt-free, treasury-issued currency found out the hard-way that these fucking parasites play hard ball when you fuck around with their money.
I'm just sayin.....
I just want to know when will the fed start buying reits .
Seems to me they should focus more on the economic hurricane than on Irene. Irene will come and go, this financial mess is here to stay, compliments of Greenspan, Geithner, Paulson, Obama and Bernanke.
I'm waiting for the headline, "Q1 GDP revised. Still shows economy is growing."
.....In China!!
No dickhead it's not about back to school, it's about the effing easter bunny , you stupid mofu
http://www.presstv.ir/detail/195831.html
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D-Day!
The 3 men fighting over the bar tab on the titanic finally said, fuck you mr bartender, we are not paying it!
The number is complete bullshit anyway. Maybe liesman and pissonme can spin into positive of less gov spending that is the big turd component of GDP.
This is an inflation adjusted number, right? Ha, what a freaking farce.
We have to protect our phoney baloney jobs here, gentlemen. We must do something about this immediately. Harrumph! ~Gov. William J. Le Petomane (Mel Brooks)
Hello dumbass, unimaginative, permabull banker. What...three years now of waiting for recovery? Brilliant!
And these guys are supposed to be the cream of the crop, the geniuses in our midst.
Pink slips, please. Tens of thousands of termination notifications for useless, parasitic bankers, please.
Banksters know 1 thing, they have an empty bag held out that someone is supposed to fill with free money...hang them all.
How can we spin this to seem positive? The dog was ran over by a bus multiple times, but it looks like it is still alive. I swear I saw it move, no really.
"The question is are we looking at a fourth quarter recovery?"
Hmmmm!
There is still air in the bus tires.
The last one's name backwards is Noshm Ibmomiv. Is there really any difference?
And we don't have recovery, we have yrevocer.
Say it like it is.
CNBS Pissonme:
We've got an earthquake & hurricane in a week!
How can the markets handle this? Is the world over?
Oh The Denial!
they are all peripheral visionaries. they can see the future...but only when it's right next to them.
Or in their rear view mirror.
I have a pulse God damn it. I am a human being you fiendddddddddd
Main street "investment" has vacated the party. Only 5 minute traders and manipulators left. Remember that old phrase " sell?Sell to who" . I'm thinking that will be used quite a bit today as the rats exit on mass.
Just a preview to Armageddon, soon at a store near You.
Jobs. No, not AAPL Jobs. Up or down? That's the leading indicator.
Sorry for the bad news, but it's "game over".
It ain't over until the Bernank sings...there will be no singing today, except maybe some choice hymns sung by broken traders leaping from windows at 10:05
Don't worry. Something will be bullish today.
Reuters has an interactive feature today explaining QE::
http://uk.reuters.com/business/economy
One thing is for sure. Tomorrow is going to be a heck of a Saturday. Ooooone heck of a Saturday.
Some things are going to go moon-wards (PM's??) and others are going sub-terranain (Dollah???).
Not sure if people will want monday to open or shut. Then there is Eyerene, in the Eye of the storm, so to say.
Plus, who are these geniuses anyways? How come they get airtime? How come their spouting get's bits and bytes? That insurance company somewehre, whose Dismal Science blowhard is talking abotu Q4 recovery....hmmmmmmm, I see Capital Adequacy issues at his firm, say in November or so?
Joke I say, all a big joke.
BeWake
http://aadivaahan.wordpress.com/2011/08/24/precursor-03-bottom-falling-out-still-still-and-a-gander/
I get this feeling that unless Bernanke comes out and literally pukes on himself and has a heart attack on national television, the market is going to rally regardless of what he says.
if nothing else, as a show of fealty.
hopefully I'm wrong...but I just got this feeling...maybe it's the shrimp I ate last night...I can't be sure.
I guess I can rule out the shrimp theory.
You (Washington and Wall Street) do not have the right to "tag" innocent people (American Taxpayers) for financial loss (Read taxes and bailouts) prior to holding those involved and responsible (Washington and Wall Street) first.
SPIN SHOULD BE LIKE THIS
'CONSUMERS KNEW ABOUT HARRICANE SO DIDNT SPEND MONEY , SO ITS BULLISH AS THERE'S PENT UP DEMAND NAD TO BE RELEASED IN 3-4 QRT'
am i good?
alx
Are these people real? I am slack-jawed with some of these responses, they basically say nothing or just dismiss (pretend) that it's 'in the rearview' and we'll see what comes next....'in line with expectations' etc etc. It's nothing but BS...
As for mr ballew, it's an 85 word composition where the word 'recovery' is used four times..... And he seems to believe there is recovery!!!!
Do these people read / watch anything besides their MSM crap?