GDP grows slender 1.3% in second quarter (1Q revised SHARPLY down, markets tanking)

Marketwatch ^ | 7.29.11 | MarketWatch

[Free Vulcan]

WASHINGTON (MarketWatch) — Gross domestic product expanded at a paltry 1.3% annual rate, the Commerce Department said Friday to mark the weakest six-month period since the recovery began.

Furthermore, first-quarter GDP was drastically revised downward to show just a 0.4% gain from the initially reported 1.9% improvement. And the recession proved to be deeper than initially projected. See related story about the recession.

Economists had forecast GDP, the inflation-adjusted, seasonally adjusted value of all goods and services produced in the United States, growing at a 1.6% rate in the second quarter.

[americanophile]

From 2009:

[Farmer Dean]

I wonder what the real numbers would tell us.

[Del Rapier]

And people are out of savings at this point,many out of benefits.Going to be one crazy messed up year.

[RetiredTexasVet]

The Roosevelt Progressives and Democrats are trying to blame the lack of a new debt limit extension as the cause of the stock market drops, low GDP growth, increased syphilis in San Francisco, and every other possible malady instead of owning up to their own stupidity, job killing policies and regulations, and desire to transfer wealth to ensure that everyone is poor (except themselves of course).

[RetiredTexasVet]

Additionally, we are in a depression when you discount the Feds dismissal of inflation. Take the increases in the GDP and subtract out the real inflation rate of at least 10% and we have negative growth ... a depression!

[expatguy]

It gets much worse FRiend - one would expect that the stock market would be up considering the weakness of the dollar but that ain't the case.

What this means is that foreigners have now lost faith in the US economy.

It will get worse - much worse.

Get ready for China and others to pull the plug.

An American Expat in Southeast Asia

[expatguy]

It aint no recovery - The USA is in a Depression and it is going to get worse - much worse

[Moonman62]

This way, going from .4% Q1 to 1.3% Q2, voila - we just continue to be in this murky “up one quarter, down the next” sputtering “recovery” where everything is unexpected. The poor economists.

That way they avoid the technical definition of a recession. Economists who are paid by the government are expected to make the government happy, not to be truthful or accurate.

[chessplayer]

obammer- “It`s Bush`s fault. And Reagan`s fault. And Nixon`s fault. And Eisenhower`s fault.”

[cranked]

Yes, you missed the non-announcement from the White House that we never came out of the first recession. /s =.=

[algernonpj]

Additionally, we are in a depression when you discount the Feds dismissal of inflation. Take the increases in the GDP and subtract out the real inflation rate of at least 10% and we have negative growth ... a depression!

Correct ... the GDP deflated by a CPI that reflects real inflation.

[Lexinom]

Cut earned income taxes to 10% across the boards.

Modest hike in capital gains taxes to perhaps 40% from 15%. The incentive - passive income - to invest is still there.

Point is, more of us need to get off our duffs and actually produce - and keep more of the pay for producing. Therefore, let's do more to reward work.

I'm afraid there's no getting out of work as the prescribed solution.