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Thread: U.S. GDP Grows Just 1.3%

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    U.S. GDP Grows Just 1.3%

    Ouch.

    U.S. GDP Grows Just 1.3% - WSJ.com
    The U.S. economy expanded at a slower pace than expected in the spring as consumers cut back on spending, while revisions showed the slowdown since the beginning of the year was much more drastic than previously thought.

    The Commerce Department Friday said gross domestic product rose at an annualized seasonally adjusted rate of 1.3% in April through June, while first-quarter growth was revised down sharply to a 0.4% rate from the earlier estimate of a 1.9% gain. A big reason behind the downward revision in first-quarter growth was that the inventory buildup by companies was less than initially estimated, while outlays by the federal government and consumers were also revised down.
    BAD: GDP Misses Estimates At 1.3%, Q1 Revised Down To Just 0.4%
    GDP just missed expectations at 1.3%.

    Analysts were looking for 1.8%.

    Even worse, perhaps: Q1 GDP was revised from 1.9% all the way down to 0.4%, which is stunning.

    Personal consumption, which was expected to grow by 0.8%, only grew by 0.1%.

    Bad all around

    Stocks diving now over 1% in the pre-market.
    I know somebody had predicted 1.3%, but it was certainly a low-ball estimate. I expected the 1st quarter to revised down (just because that's been the trend) but never would have guessed 0.4%??

    The graph of the recovery now looks like you threw something off a building and it hit bottom and took a small bounce.

    Bernancke is of course assuring us that the next few months will be better...

    Core inflation:
    Up 1.6% last quarter and 2.1% this quarter.

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    Re: U.S. GDP Grows Just 1.3%

    Core inflation: Up 1.6% last quarter and 2.1% this quarter.
    "Not to worry" Bernanke assures us.

    We should forget all this and get back to ensuring that we raise the debt ceiling under the guise of some pretend "cuts" to take on a couple more trillion dollars. After all, it's the "responsible" "adult" thing to do.

    Following the example of our great President, one should always seek "balance" when it comes to negotiations, but avoid it all cost when it comes to budgets.

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    Re: U.S. GDP Grows Just 1.3%

    Debt overhang remains a drag. From 2010Q1 to 2011 Q1 (domestic nonfinancial debt figures are not yet available for Q2), domestic nonfinancial debt rose a brisk $2.35 for every dollar of GDP. The federal government and corporations led the way in this increasing leverage. That will become more problematic as yields rise down the road. Meanwhile, household deleveraging continues. That continues to put a drag on personal consumption growth. Finally, in a whiff of what lies ahead as fiscal consolidation gets underway at some point in the future--fiscal consolidation creates a headwind early on, it's payoff is medium- and longer-term--a large part of Q1's near flat growth was the result of a 9.4% decline federal government consumption expenditures and gross investment (stimulus winddown and modest fiscal consolidation). Due to the nation's unsustainable fiscal trajectory, such consolidation is necessary. Otherwise, the overall cost of capital will eventually rise to levels that damp growth and worsen the nation's long-term imbalances. Current political dysfunction may result in some bump in interest rates, even if a crisis is averted and no credit downgrade occurs, on account of a more riskier profile for the U.S.

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    Re: U.S. GDP Grows Just 1.3%

    Quote Originally Posted by Taylor View Post
    "Not to worry" Bernanke assures us.

    We should forget all this and get back to ensuring that we raise the debt ceiling under the guise of some pretend "cuts" to take on a couple more trillion dollars. After all, it's the "responsible" "adult" thing to do.

    Following the example of our great President, one should always seek "balance" when it comes to negotiations, but avoid it all cost when it comes to budgets.


    The markets work on confidence. The pony show of not raising he debt ceiling has done nothing to improve confidence. To the contrary, it has directly resulted in hurting confidence and thereby hurting the markets. The longer the game goes on, the worse the impact will be.
    Quote Originally Posted by Bucky View Post
    The economy will improve under this bill. If a few people die, it will be for the betterament of this country.

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    Re: U.S. GDP Grows Just 1.3%

    Quote Originally Posted by Taylor View Post
    "Not to worry" Bernanke assures us.

    We should forget all this and get back to ensuring that we raise the debt ceiling under the guise of some pretend "cuts" to take on a couple more trillion dollars. After all, it's the "responsible" "adult" thing to do.

    Following the example of our great President, one should always seek "balance" when it comes to negotiations, but avoid it all cost when it comes to budgets.
    Guess I can now add those results to the growing list of Obama "successes" as the left continues to buy the rhetoric and ignore the actual results. The path to re-election is to focus on non result oriented issues in order to convince the brainwashed and braindead that "The One" truly cares and deserves another 4 years.

    Obama record, 15.1 million officially unemployed TODAY 2 1/2 years later, 16.2% total unemployment or underemployment over 24 million TODAY, 4 trillion added to the debt as of the end of fiscal year 2011, and a rising misery index(7.83 to 12.67).

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    Re: U.S. GDP Grows Just 1.3%

    Market Plunges at Open on GDP, Debt Issues
    The major averages posted losses approaching 1 percent, with the Standard & Poor's 500 drifting nearer to key moving averages that, if breached, could lead a stronger move lower. The damage was broad-based and evenly distributed, though materials were getting the worst of it early on. All 10 sectors on the S&P 500 were negative, with consumer staples showing the least damage.
    CNBC

    Economy grinds to halt
    GDP report: Economy picks up to 1.3% growth in Q2 - Jul. 29, 2011


    All we need now is a really negative report on jobs
    Let's cross our fingers and hope that next Friday brings some better news.

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    Re: U.S. GDP Grows Just 1.3%

    donsutherland1 and CriticalThought are the only posters to this thread who make sense. If you pay attention to the economic indicators, you're really not throwing yourself into a panic over what's happened with the economic growth numbers. They are relatively close to what most economist expected. A -0.5% difference (1.8 - 1.3) isn't much to panic about. The economy's in the ballpark of analysist estimates.

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    Re: U.S. GDP Grows Just 1.3%

    Quote Originally Posted by CriticalThought View Post
    The markets work on confidence.
    Oh, really? Rather than spending all this money on foreign aid, maybe we should just send Tony Robbins out to Ethiopia or Zimbabwe and really get things pumping.

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    Re: U.S. GDP Grows Just 1.3%

    I'm not sure how anyone expects significant growth without significant hiring. Additionally, wages have been stagnant for some time now while real inflation has grown much more than the cooked books indicate.

    People without disposable income can't buy many nonessential goods and services. In a 70 percent consumer spending GDP, that matters.

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    Re: U.S. GDP Grows Just 1.3%

    Quote Originally Posted by Objective Voice View Post
    donsutherland1 and CriticalThought are the only posters to this thread who make sense. If you pay attention to the economic indicators, you're really not throwing yourself into a panic over what's happened with the economic growth numbers. They are relatively close to what most economist expected. A -0.5% difference (1.8 - 1.3) isn't much to panic about. The economy's in the ballpark of analysist estimates.
    You don't see a problem with accepting such low expectations especially 2 years after the end of the recession? Accepting such low economic numbers ought to concern everyone especially with 24 million unemployed and underemployed Americans. I would have expected a lot better numbers from someone that the liberal media claims is the smartest person ever to hold the office.

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