GDP Down 6.1%, Reflecting Continuing Economic Woes

CNBC Online ^ | April 29, 2009

[FreepShop1]

The stock market “climbs a wall of worry”. Buy stocks and keep buying. Dow 9,000 in May.

[FreepShop1]

Yet, the Dow is up 90. Amazing.

Because personal consumption was MORE THAN DOUBLE expectations. The GDP means nothing next to that.

[NeoCaveman]

B. You don't understand Wall Street. The economy is showing signs of recovering.

Bullclinton.

Things are getting worse

I bought a bunch of stock when the market was 6500 and made 15% does that me an obama troll??

Congrats. Hope you take your profits before we go back and test the bottom.

[tc45a]

You have not answered the questions yet. This is the third time I am asking you to answer the questions and yet you refuse to do so. You are certainly a liberal troll.

You asked me the same questions 2-3 weeks ago and I gave you my answer. Look it up.

Liberal troll. LMAO. No, I'm not a liberal troll and I'm also not a RNC Bush BOT like yourself who carries water for a party that has deserted my conservatism.

[sanchmo]

The GDP numbers are “annualized” meaning that they measure the rate of contraction for 3 months, then multiply that by 12 months to see what the annual change would be if it continued. The math is not exacgtly as simple as described, but a one-quarter 6% annualized decline is about a 1.5% total decline for the quarter (6 divided by 4 quarters). That being said, we’ve had -0.5% annualized in Q3-08, -6.3% in Q4-08, -6.1% Q1-09, based on what we’re seeing in April plus announced layoffs prob -2% to -6% annualized in Q2-09, which is about a 3.5% to 5% total decline in 1 year...

Not exactly 1930, but I was laughed at and called a nutjob in October for warning about the risk of that range of decline.

[jveritas]

No answers yet troll?

[NeoCaveman]

Because personal consumption was MORE THAN DOUBLE expectations.

On reduced income and on increased savings. I guess defaulting on your mortgage frees up cash for that extra shot of expresso in your morning Starbucks.

[jveritas]

You are refusing to say that Obama is a socialist, you are refusing to say that Obama is a left wing liberal, you are refusing to say that Obama is a defeatist and an appeaser. Hence you are a liberal troll and an Obama supporter.

[jveritas]

How foolish are you? GDP is the most important measure for the economy and next to it come unemployment rate. All the other measures that Wall Street use to go up and own are secondary to meaningless compared to this one.

What exactly happened so the consumption went up 2%? Are more people being hired? No. are they making more money? No. Is it because people got some money back when they filed the tax return last month? Yes. So it is really a temporary spike in spending.

[rwfromkansas]

GDP down 6 percent.

OIL GOES UP. Yay!

If GDP went down 10 points, oil would be at 100 a barrel now.

[tc45a]

No answers yet troll?

I already gave you my answers 2-3 weeks back. I'm not going to post them every time you call me troll.

When a poster said the GDP never contracted under Bush I just pointed out that it did (as did other posters)....and that makes me a troll. Why do you want to change facts? Why are you rooting for the economy to collapse?

Bye.

[FreepShop1]

You don't understand Wall Street. The economy is showing signs of recovering.

I think we need an Econ 101 course for FReepers. Lesson 1: lagging indicators.

[Mad_Tom_Rackham]

Don’t worry, Soros will bail us out...Or is that “buy us out”?

[jveritas]

Listen troll. I do not have the answer from you 2-3 weeks ago and all what you have to do is to answer right now and on this thread these three questions with simple yes or no but yet you refuse to do it. You are a troll and a coward.

[tc45a]

You are refusing to say that Obama is a socialist, you are refusing to say that Obama is a left wing liberal, you are refusing to say that Obama is a defeatist and an appeaser. Hence you are a liberal troll and an Obama supporter

I told you 2-3 weeks back that obama is a socialist, a left wing liberal and a appeaser now leave me alone.

[Gabrial]

The drop in GDP is indicative of the policies of the worst president ever, Barack Obama.

In the first 100 days he has spent more than every president before him COMBINED. As a result of his policies, the government now owns 80% of AIG, 35% of GM, and 40% of Citibank, and he is just getting started. Next he has sights on health care, energy, and yes, the military (according to him, we need a government funded civilian military force to do his bidding, just as well funded and armed as our current military).

When the horrible inefficiencies of bloated government bureaucracy infect what used to be private businesses, GDP suffers. This exposes the false budget and deficit projections Obama’s cronies have foisted on the American people. Do the math and it is a horrible train wreck. Look at Russia's GDP and see how it worked out for them.

Worst president ever.

[SunkenCiv]

pleikumud wrote: It's going to get worse since Obama is letting the Bush tax cuts expire and his Socialist Congress will enact Cap & T[rade]. The combined result will be over a trillion dollars in new taxes, contraction of business, and massive unemployment --- 15% and more.

Obama plans to spend over 3 per cent of GDP on scientific research.

[jveritas]

Yes GDP and unemployment rate are to be tossed aside now because the consumer spending went up 2% due to some money the tax payers got when they filed their tax return. Yeepie the economy is in full recovery and Obama socialism and his trillions in wasteful spending on welfare and on dysfunctional government programs are working very well (extreme sarcasm).

[ExTxMarine]

Hope. Change. Obama’s New America Amerika. There fixed it!

[FreepShop1]

How foolish are you? GDP is the most important measure for the economy and next to it come unemployment rate.

How am I foolish? I am trying to explain the stock market's rise, which some people here simply don't understand. Yes the GDP stinks, yes the unempoyment keeps rising. but all that and WORSE was PRICED IN MONTH AGO by the market, including but not limited to a government TAKEOVER of Citibank. This morning you have Citibank asking that same gov't for permission to PAY BONUSES! So much for pricing in their demise! do you understand now? The Dow Jones is not an emotional sentiment index.

Here's some more grist for your mill. In April, foreclosures hit a RECORD HIGH. So how do you explain this chart...?

That is Beazer Homes, one of the largest homebuilders. This chart shows BZH is up 1,200% IN 7 WEEKS! (it took Google 5 years to go up 700%)

Things may indeed get much worse. the market has already priced it in. By the way, NONE of this has anything to do with Obama, Bush, trolls, etc. It is financial reality. the bottom is in.