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 ...
Thanks.
...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”....
Oh, wait...
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