US economy sinks at a 5.7 percent pace in 1Q

Yahoonews ^ | 5/29/09

[anniegetyourgun]

WASHINGTON (AP) -- The U.S. economy sank at a 5.7 percent pace in the first quarter as the brute force of the recession carried over into this year. However, many analysts believe activity isn't shrinking nearly as much now as the downturn flashes signs of letting up.

The Commerce Department's updated reading on gross domestic product, released Friday, showed the economy's contraction from January to March was slightly less deep than the 6.1 percent annualized decline first estimated last month. But the new reading was a tad worse than the 5.5 percent annualized drop economists were forecasting.

[jiggyboy]

Didn’t a trillion dollars previously never in the economy go out last month? How can this result in down numbers?

Quite right. Interest rates and mortgage rates are going just the way you'd think they would. Here's the ten-year treasury note, which is what they base most 30-year mortgages on:

We might very well not see 3% there again.

[1010RD]

AP = Advancing Propaganda

[1010RD]

Government is adding uncertainty to the market. Something it does best.