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 ...
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.
Sorry.
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:
Beneath The Surface, Today's GDP Report Was Actually Good
"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.
The recent gains in the stock market sure feel a lot like fattening-up the turkey before Thanksgiving.
NO. Actually 30 million new mexican, zomali etc. maggots with their new American citizenship which they illegally invaded to obtain with the help of democrats , these 30 million new will import 100 million of their relatives from their dirty homelands to further destroy America
Stop amnesty now . THAT is the biggest battle call your congressmen, twitter them , email them ,protest on the street. it's now or never people
According to Zero hedge, a lot of the personal spending was ahead of the “fiscal cliff” avoidance.
Shrinkage: US Economy Declined By -0.1% In Q4
Submitted by Tyler Durden on 01/30/2013 08:40 -0500
A stunner out of the BEA which just reported a Q4 GDP of -0.1% that was leaps and bounds below the 1.1% estimate, and a plunge from Q3's 3.1%. The factors: Private Inventories, Exports and Government Expenditures all of which contracted, by -1.27%, -0.81%, and -1.33%. The silver lining was in Personal Consumption Expenditures which added 1.52% to the negative print, most of it however driven by a surge in spending ahead of the fiscal cliff. Ironically, this was the biggest government-driven detraction from growth since Q1 2011, when GDP led to a -1.49% cut in the GDP, same in Q4 when government spending on defense fell the most since 1972. The solution is simple: print moar drones. Enter Mali. And since everything is now AMZN-ing, we can't wait for the spin that the GDP's margins were actually better than expected, leading to a 200 point surge in the DJIA.
I certainly did. I might have gotten out a little early, but it's not always about perfect timing. :-)
Actually, BO's re-election had little to do with it. I've been reading article after article about how the market is going nowhere but up. "To the Moon! It's a Can't Lose Bet! S&P at all-time highs! WooHoo!!!!!"
Last time I saw this was '06-ish. Pulled lots of $$$ out then, too.
Gold markets expecting more QE.
The bill also doubles the number of H1B's allowed into the country.
That clobbers the high end of the market, too.
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