Personally, I think this GDP report is actually showing the US economy is coming back very strongly now. While it showed a -.1% growth, most of this decline was due a decrease in inventories, decrease in government defense spending, and a decrease in exports. The lower inventories show that aggregate demand is stronger than expected. The economy will rebound to rebuild these inventories to adjust for the higher demand. Also, while exports were a drag, the IMF has shown that it expects global demand to grow faster in 2013. The euro zone will be the only drag. Finally defense spending is something that can be ironed out in congress. While I am not too impressed with this congress, I think that they will take the hint from this GDP report and realize that lowering spending too drastically will result in poor economic performance in the short term. This, if anything, will help to spur some good negotiations in DC.