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Economy expanded at fastest pace in a year as summer waned

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randel

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Bottom Line - Economy expanded at fastest pace in a year as summer waned



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U.S. economic growth increased at its fastest in a year in the third quarter as consumers and businesses set aside fears about the recovery and stepped up spending, creating momentum that could carry into the final three months of the year.
Though part of the increase came from the reversal of temporary factors that had restrained growth, the expansion was a welcome relief for an economy that looked on the brink of recession just weeks ago.

snip




U.S. gross domestic product expanded at a 2.5 percent annual rate in the third quarter, the Commerce Department said in its first estimateon Thursday. That was a big acceleration from the 1.3 percent pace in the April-June quarter and matched economists' expectations.
"The probability of a double-dip has diminished quite a bit," said Sung Won Sohn, an economics professor at California State University in the Channel Islands. He made the comments before the release of the report.
 
i would think this is good news, no matter your politics...couple this with the good news on the European debt crisis, and i'd say we are headed in the right direction.
 
Read what it says........Unfortunately you have to decipher all the information. Actual factory orders did not go up, they were quite sluggish. People did spend more though which means most of this is likely in price increases.

Inflation is great for Wall Street and certian segments of industry but not so much for main street. Well, pretty much not at all when you figure that people didn't actually buy more things they just paid more which is why we are not seeing a bump in hiring.
 
randel said:
i would think this is good news, no matter your politics...couple this with the good news on the European debt crisis, and i'd say we are headed in the right direction.
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I'm not so sure there was any "good news on the European debt crisis"...we've merely lowered our standards on what constitutes good news, to the point where the mere avoidance of imminent catastrophe is viewed as good news. I hope that the economy continues to grow, but I think we are a long way from recovery. Historically, recessions caused by financial crises have been some of the most severe and longest lasting. On average, it takes the affected country 7-10 years to recover from a financial crisis.
 
1Perry said:
Inflation is great for Wall Street and certian segments of industry but not so much for main street. Well, pretty much not at all when you figure that people didn't actually buy more things they just paid more which is why we are not seeing a bump in hiring.
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A bit of inflation would be very helpful right now. It would help reduce the crippling debt burdens on consumers, and it would help reduce unemployment. I like the idea of the Fed pursuing a target of nominal GDP growth (which is real GDP growth + inflation), rather than an inflation target. With the economy in the duldrums and unemployment stuck at high levels, we should be aiming for about 4% inflation instead of 1-2%.
 
Kandahar said:
A bit of inflation would be very helpful right now. It would help reduce the crippling debt burdens on consumers, and it would help reduce unemployment. I like the idea of the Fed pursuing a target of nominal GDP growth (which is real GDP growth + inflation), rather than an inflation target. With the economy in the duldrums and unemployment stuck at high levels, we should be aiming for about 4% inflation instead of 1-2%.
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No, decreasing our debt spending would be good right now. We see in this article that we have inflation BUT nobody is hiring. Real actual inflation has been well above 4%. The drop in oil has helped.

Sorry, people have not bought into the plan that they had better buy today because it's going to be more expensive tomorrow. What the lack of factory numbers show is that they are still not buying at all. Partially because what they have to buy is more expensive and they have no idea when it's going to stop.
 
randel said:
i would think this is good news, no matter your politics...couple this with the good news on the European debt crisis, and i'd say we are headed in the right direction.
Click to expand...

Remember what was said 'Commerce Department...estimate'. This will get downgraded in a few weeks when the real numbers are known AND no one is paying attention. The same happened after the first and second quarter this year.

Further, the news from Europe sounds good but there is nothing concrete about it...yet. We'll see.
 
Inflation, increasing unemployment, exponentially rising debt......

Where's the good news? Things won't turn until corporate America starts to feel certain of a new administration on the horizon.
 
So I guess we no longer need Son of Stimulus?
 
GDP grows more than expected, unemploymnet down slightly, manufacturing and exports picking up. Yep ... sky must be falling. :lol:
 
Republicans and their sycophants will go to great lengths to find a cloud in this silver lining.

Imagine if the President could get his job bills passed the positive one two punch this would have for the nation in battling unemployment.
 
haymarket said:
Republicans and their sycophants will go to great lengths to find a cloud in this silver lining.

Imagine if the President could get his job bills passed the positive one two punch this would have for the nation in battling unemployment.
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things are proceeding as i expected they would...i figured it would take a couple of years to get things turned around, and it does appear we are headed in the right direction...not that we don't have work to do, but we are heading the right way.
 
Kandahar said:
A bit of inflation would be very helpful right now. It would help reduce the crippling debt burdens on consumers, and it would help reduce unemployment. I like the idea of the Fed pursuing a target of nominal GDP growth (which is real GDP growth + inflation), rather than an inflation target. With the economy in the duldrums and unemployment stuck at high levels, we should be aiming for about 4% inflation instead of 1-2%.
Click to expand...

Disagree. The worker will still have almost no bargaining power to increase wages. Even the current rate of inflation is hard for a lot of us.
 
AdamT said:
GDP grows more than expected, unemploymnet down slightly, manufacturing and exports picking up. Yep ... sky must be falling. :lol:
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What article did you read? More than expected..."GDP...matched economists' expectations", unemployment down slightly..."not fast enough to make a dent in unemployment."...'recovery's pace is still too weak to lower a jobless rate"

What number is 'spin'?
 
haymarket said:
Imagine if the President could get his job bills passed the positive one two punch this would have for the nation in battling unemployment.
Click to expand...

Yeah, national debt would go up another half trillion.
 
randel said:
i would think this is good news, no matter your politics...couple this with the good news on the European debt crisis, and i'd say we are headed in the right direction.
Click to expand...

This is great news. Instead of the conomy being crappy, it's just pissy. I'm pumped!
 
Helix said:
Disagree. The worker will still have almost no bargaining power to increase wages. Even the current rate of inflation is hard for a lot of us.
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Workers bargain for increased wages via increased performance, job skills, changing industries, moving to where wages are higher, moving to where they are big fish in a small pond, working overtime, etc., etc.

I see your "almost no bargaining power" and I laugh.
 
haymarket said:
Republicans and their sycophants will go to great lengths to find a cloud in this silver lining.

Imagine if the President could get his job bills passed the positive one two punch this would have for the nation in battling unemployment.
Click to expand...

Yeah, just imagine all the new debt and deficit spending. That would awesome, huh?
 
apdst said:
Yeah, just imagine all the new debt and deficit spending. That would awesome, huh?
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Wait, overspending and debt can cause catastrophic global conditions!?!
The moral hazard of borrowing our way out rather than working our way out, is a bad thing?!?

That sounds like sycophant-speak!
 
These first estimates are always wrong, sometimes as much as 100% too high. I am confident the revised number will drop since it was in line with the economists....the same suckers that haven't guessed a marginally correct number in years.

One more thing, the GDP is also skewed by the vast over spending by the fed's. Wow, if we borrow and spend another one or two trillion more dollars the economy would look like it's taking off........yeehaa.
 
randel said:
i would think this is good news, no matter your politics...couple this with the good news on the European debt crisis, and i'd say we are headed in the right direction.
Click to expand...

If only.... All signs point to disaster in a couple of months that will make 2008 look like a small dent on your car. Our sovereign debt crisis is incomingggggg. which will be the beginning of the fat lady singing.
 
jasonxe said:
If only.... All signs point to disaster in a couple of months that will make 2008 look like a small dent on your car. Our sovereign debt crisis is incomingggggg. which will be the beginning of the fat lady singing.
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:roll:
The US is in absolutely no danger of a sovereign debt crisis. The vast majority of our nation's debt is held by AMERICANS, and even the foreign-held debt is mostly denominated in US dollars.
 
Dickieboy said:
Yeah, national debt would go up another half trillion.
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The major problem facing the nation today is not the level of debt but the stagnation of the economy and the problems that are associated with it like unemployment, under employment, the decline of the middle class, the disparity in wealth and its increasing divide, and other things all which spell very bad things for a democratic republic.
 
AdamT said:
GDP grows more than expected, unemploymnet down slightly, manufacturing and exports picking up. Yep ... sky must be falling. :lol:
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Remember this:

"The real news should be that last quarter’s growth that was originally estimated to be 1.9% was revised to 0.4%! Also, 2010 fourth quarter growth was revised from 3.1% to 2.3%."

BREAKING: GDP Growth Rate
 
Mach said:
Wait, overspending and debt can cause catastrophic global conditions!?!
The moral hazard of borrowing our way out rather than working our way out, is a bad thing?!?

That sounds like sycophant-speak!
Click to expand...

Since that is not our main problem - it is indeed sycophant speak. And you do it quite well I must admit.
 
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