Skip to comments.GDP Shows Surprise Drop for U.S. in Fourth Quarter (unexpected alert)
Posted on 01/30/2013 5:46:18 AM PST by Perdogg
The U.S. economy posted a stunning drop of 0.1 percent in the fourth quarter, defying expectations for slow growth and possibly providing incentive for more Federal Reserve stimulus.
(Excerpt) Read more at cnbc.com ...
I find this statement amusing, for some reason.
Stop buying imported goods.
Return jobs to America.
Wow, the start of another ‘Bush Resession’!
This number will be corrected shortly. Any record of it ever having been reported will then be erased by the Ministry of Truth.
If GDP keeps going down all the time, I would think the last four years of stimulus hasn’t worked. Why does the Fed need more stimulus?
When business owners realized that the Marxist was re-elected by the Takers, the Makers pulled in their chips.
The Q1 results come in in March. By then, the phony bullish numbers that Wall St. puts out every Jan. will show a bust, as they have the past three years.
Figures lie and liars figure: The motto of the Obama administration.
The stimulus is working - in Asia.
This is terrible, we need to print money faster to keep up with demand!!
Yea, we all must have missed that the recession ended.
Waiting for the media to put a positive spin on this GDP number.
They can make it up in volume.
Or, in other words, if banging our heads is not working, we should bang our heads even harder.
With 3-D Printing and China hitting the LTP, jobs may be coming home.
Wow it looks like that suits gold and silver just fine — gold is straight up twelve bucks since that came out.
“...The economy shrank from October through December for the first time since the recession ended
I find this statement amusing, for some reason....”
Actually, it’s outright hilarious. Just another classic example of just how brain-diseased liberals are. They actually believe the recession ended. Now, they’re looking down the economic tunnel and they see light at the end of it, but in reality it’s the Obama Depression Train coming at em full throttle with old Omugbee himself at the helm. Can you spell collapse?
Well, this will certainly come as a shock to my father, who believes that the economy has been recovering for some time and that unemployment rapidly is decreasing.
I am guessing that tha MSM and the Administration will find some “plausible reason” that they can circulate to the steeple, and it will be seen as “just a bump in the road.”
Guess they shouldn’t have raised our taxes.
...or trying to add 11 million more workers where there are no jobs.
20 million new amnesty citizens will boost the economy.
The American economy is hopelessly in the tank due to Obama’s communist aspirations, and everone knows it except for a few fuzzy-thinking eggheads who can’t be bothered to look up from their computer keyboards for five minutes.
Taxes went up January first.
That wouldn’t be included in the fourth quarter of 2012.
So yes, first quarter 2013 could be even worse.
If they were true to their 2000-2008 form they'd lead with this story, and follow it up with Gallup's poll showing Obama tied with W as the least popular second term president in recorded history.
As they are, though, I'm listening to ABC News lead with a gun story and following up with a story quoting an economist saying this contraction is indicative of a recovering economy.
As I type this, no sh*t.
1st Quarter GDP is going to be even worse. I can see it in my business right after the tax increases hit customers paychecks.
No, american prosperity rests on the freedom to deal globally
Made your post more accurate.....
The 0bama regime may have declared "the recession ended", but no one told the economy. I would expect the drop in GDP this quarter to be almost precipitous due to the tax increases and 0bamascare impacts. Of course the bureaucrats in the regime will be caught off guard and it will once more be "UNEXPECTED".
You should listen to the talking heads on CNBC. With the exception of Rick Santelli, the meme is that all is good. The private sector is growing. Everything that counts in the economy is improving. This is a one off, etc. Only Santelli is saying that the number is the number and isn't it interesting that it now comes out.
I sell industrial supplies and I can tell you last quarter sucked and so far this quarter is worse.
Taxes went up on January 1 and gasoline just shot up $.25 per gallon over the last two days. The economy is just fine. I’m sure the first quarter of the new Obama administration is going to be rosy!
Brace for impact.
.1 percent is not a stunning drop. It does not provide any incentive for more “stimulus.”
There have been 3 “stimulus” packages. Of course they could not have worked. All they could have done was lower the value of money, so that the reported numbers would have risen, while the actual numbers in terms of value would not have changed.
So now the idiots want another “stimulus.”
Typical. When a liberal solution fails, as they all do, liberals always demand a strengthening of the solution that failed, and that will fail too.
The FED is juicing the stock market.
“We need more cowbell!!!”
- Ben Bernanke
Taxes work! Heil Obama!
Analysis from Business Insider:
People will be stunned to see that today’s GDP report went negative for Q4... the first negative print since The Great Recession.
But the report isn’t that bad. In fact it was arguably good.
For one thing, most of the collapse was due to a stunning fall in military spending. That’s not good for GDP, but it doesn’t reflect the real underlying strength of the economy.
And it’s mostly due to war drawdown. That’s a good thing for everyone!
There was also a big decline due to a reversal of big inventory buildups.
The change in real private inventories subtracted 1.27 percentage points from the fourth-quarter change in real GDP after adding 0.73 percentage point to the third-quarter change. Private businesses increased inventories $20.0 billion in the fourth quarter, following increases of $60.3 billion in the third and $41.4 billion in the second.
Seeing a decline in inventory buildups isn’t that big of a deal really. This number always goes back and forth.
What’s key is that the numbers that really reflect the strength of the economy were much better.
Personal consumption, fixed investment, and equipment/software all grew nicely. This is the real economy humming along.
Real personal consumption expenditures increased 2.2 percent in the fourth quarter, compared with an increase of 1.6 percent in the third. Durable goods increased 13.9 percent, compared with an increase of 8.9 percent. Nondurable goods increased 0.4 percent, compared with an increase of 1.2 percent. Services increased 0.9 percent, compared with an increase of 0.6 percent.
Real nonresidential fixed investment increased 8.4 percent in the fourth quarter, in contrast to a decrease of 1.8 percent in the third. Nonresidential structures decreased 1.1 percent; it was unchanged in the third quarter. Equipment and software increased 12.4 percent in the fourth quarter, in contrast to a decrease of 2.6 percent in the third. Real residential fixed investment increased 15.3 percent, compared with an increase of 13.5 percent
So, less war, more business investment. This was a good report.
At this point, media reporting is the best laugh I get on a daily basis.
Whew.. it sure is a good thing our esteemed leaders passed that tax hike on the “filthy rich”....
Obviously, there has not been enough stimulus spending. We need to give another Trillion to Obama’s campaign donors, ASAP.
re: “The economy shrank from October through December for the first time since the recession ended, hurt by the biggest cut in defense spending in 40 years. . .”
This sentence is the spin of the story. CNBC says shrinking of the economy is due to a drop in “government spending” for Defense - yeah, for Defense, which the libs hate, but the message to low information voters is - reduce government spending and you’ll “hurt” the economy.
So, we’ll just make up for that loss in defense spending by increasing it on all those needed government social programs.
With all due respect, American prosperity has rested on the freedom to deal globally for the last two decades.
Two decades of time, during which our industrial heartland has MOVED TO CHINA. Through American industry’s policies, but also because of the policies of China.
De-industrializing what had previously been the single country with the most good to do for the most coutries.
Industrializing a massive (and rather racist) communist giant.
I pick America. Bring back American industry now.
It’s very important to note that the big shots “front-loaded” Q4 2012 with all kinds of deals, purchases, and salary tricks that were originally scheduled for 2013.
Q1 2013 has already been written off by financial writers for that reason — and now it suddenly looks like even the bean-counters and definition whores will have to admit, when the next GDP number comes out, that we’re in recession.
For those who pay attention, the federal government goosed the economy in the third quarter. Their increased spending was the largest part of the third quarter GDP increase. Now that the election is over, the spending declined. Hence the decline in GDP.
The Fed can do what they want. However, it will be like pushing on a string.
The "spending cuts" may loom, but that's all they will do.
What a joke on us. Ha ha.
Gee, I wonder if the drop in Q4 GDP growth is because imaginary growth was reported pre-election.
What?? How could that be? Warren Buffett said jacking up taxes on the rich would "improve the morale" of the middle class!
It is funny...look what was posted one minute ago:
"People will be stunned to see that today's GDP report went negative for Q4... the first negative print since The Great Recession."
But the report isn't that bad. In fact it was arguably good."
I’m not even going to to click on the link before guessing that Joe Wiesenthal, the guy who can make Larry Kudlow look like Noriel Roubini, is the author of this transparently propagandistic happy-talk.
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