GDP could be the best in nearly four years

Market Watch ^ | 1/28/2010 | Rex Nutting

[bruinbirdman]

Self-sustaining growth hasn't caught fire yet, however

U.S. economic growth probably increased at the fastest pace in nearly four years over the final three months of 2009, but it's not yet time to break out the champagne, economists said.

The Commerce Department will release its first look at fourth-quarter gross domestic product on Friday at 8:30 a.m. Eastern.

The GDP numbers are expected to "be an eye-popper," wrote Ed McKelvey, an economist for Goldman Sachs. But he cautioned that "it would be premature to break out the champagne on this news." The economy is still being propped up by a massive swing in inventories and by enormous levels of government stimulus.

The engine of self-sustaining growth isn't firing on its own yet.

Economists surveyed by MarketWatch are forecasting a 5.4% annualized increase after a 2.2% gain in the third quarter. It would be the fastest growth since the 5.4% growth rate in the first quarter of 2006. Read our complete economic calendar and consensus forecast.

A year ago, the economy was dropping at a 5.4% annual rate. . . .

[bruinbirdman]

Government handouts sure magnified that GDP stat. More to come in 2010 just in time for the elections.

[cranked]

......an economist for Goldman Sachs........

[exnavy]

Oh yes, written by an economist from “Goldman Sachs”, in the tank for the boy pres.

[JoSixChip]

And then everything started to go into the crapper at an exponentially accelerated rate starting in 2007. I wonder what happened in 2007 to cause that change?

[plinyelder]

You forgot the Sarc /Sarc tags.

[gwilhelm56]

and a small BARF Alert would have helped too

/sarc

‘10 quarter 4 or ‘11 quarter 1.. second freefall of the DOUBLE DIP... as Manchild is following FDR’s economics, expect FDR doubledip DEPRESSION.

[trumandogz]

We are never going to truly grow GDP by government largesse, but the private sector can overcome the constraints of that intervention and GDP will grow.

Hopefully, that happens sooner than later and GDP will expand this year.

[DaveTesla]

What’s he smoking?

I want some for when I get laid off.

[HarleyD]

None of these stats are true. Unemployment is still rising. Three weeks from now we’ll hear -quietly- that the numbers were revised downwards.

[Cindy]

Wowser...my first laugh for the day.

Wishing it was true, but really, my first though was, “Where does Baghdad Bob work these days?”

[freekitty]

Exactly what are they calling economic growth?

[cranked]

*snickers*

[RSmithOpt]

BS call by the article. The GDP needs to be reported with goobermint spending and tax liabilities subtracted from the total dollar estimate.

[RSmithOpt]

Economic Growth is the movie they show after the audience drinks their koolaid and eats handfuls of skittles crapped by the ‘I Feel Good’ unicorn.

[Vet_6780]

If Bernanke follows through on his claim to withdraw his support of Treasuries on Feb 1, the game will end.

[Recovering_Democrat]

No one I know says, “Gee, I’m gonna change my vote. Those new GDP numbers really kicked ass last quarter.”

[homegroan]

“....Economic Growth is the movie they show after the audience drinks their koolaid and eats handfuls of skittles crapped by the ‘I Feel Good’ unicorn.”

Best Obamanomics explanation I’ve ever heard!

[JohnLongIsland]

Another blaring example of the misrepresentations of Keynesian economics a la Nobel Prize winner Paul Krugman.

[babble-on]

Actually, the strong number comes from an increase in inventories, which makes sense. Businesses are not seeing stong demand from end users, but they had drawn down their inventories so low that they had nothing to sell if demand did return. So just to be on the safe side, and because the level of fear has in fact diminished a bit on the back of the stock market rally last year, they’re restocking the shelves to some extent.

[Son House]

Even Democrats are now learning big government spending isn't really enough to effect the GDP a whole lot, but them Bush tax cuts...

Economic Illiteracy Quiz:

After what legislation was there the largest spike up in the Real GDP?
a. February 17, 2009: American Recovery and Reinvestment Act = 111th United States Congress
b. October 3, 2008 — Emergency Economic Stabilization Act of 2008 = 110th United States Congress
c. February 13, 2008 — Economic Stimulus Act of 2008 = 110th United States Congress
d. May 28, 2003 — Jobs and Growth Tax Relief Reconciliation Act of 2003 = 108th United States Congress

( Ignore the green forecast, it was wishful thinking)