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Economy grows for third straight quarter

danarhea

danarhea

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NEW YORK (CNNMoney.com) -- The U.S. economy kept growing in the first three months of this year but at a much slower pace than at the end of 2009, according to a government report Friday.


Gross domestic product, the broadest measure of the nation's economic activity, rose at a 3.2% annual rate in the quarter, the Commerce Department said.
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And, according to the article, the Great Recession is over.......

Damn, could have fooled me. For anyone who actually believes this, take a good look around you, and don't be fooled.

Article is here.
 
I think this is all mind games by the govt. Though employment rates don't drop till growth increases, we're still seeing job losses. And the idiot stimuli haven't worked according to the experts.
 
Load of crap. No it hasn't.
 
It's not over. Some say it's just a slight reprieve, but because we've done nothing to fix the problems (just threw our money at the really rich people for awhile), that it'll come back and even worse this next time. If only the government would quit pandering to the aristocracy and actually work for the people. It's a shame.
 
The economy could have very well have grown. Of course from a lower base then before the crash. Now does this mean the economic crisis is over, far from it in reality in my opinion.

You still have a large number of forclosures that will be hitting, the sale of the those homes and the ones still in the banking inventory will hit housing prices further. You still have overleveraged private individuals who need to cut back on debt. Banks without the vast intervention of the government would be in deep trouble, if the government stops its massive intervention they would stop lending.

The main and only reason the US economy has grown is the large governmental intervention in the economy. Withouth the large federal government deficit the US economy would still be shrinking.

What does this mean, another recession most likely, when it will hit is hard to predict, but I expect that the government and the fed will do what they can to ensure it hits after the mid term elections
 
Lord Tammerlain said:
The economy could have very well have grown. Of course from a lower base then before the crash. Now does this mean the economic crisis is over, far from it in reality in my opinion.

You still have a large number of forclosures that will be hitting, the sale of the those homes and the ones still in the banking inventory will hit housing prices further. You still have overleveraged private individuals who need to cut back on debt. Banks without the vast intervention of the government would be in deep trouble, if the government stops its massive intervention they would stop lending.

The main and only reason the US economy has grown is the large governmental intervention in the economy. Without the large federal government deficit the US economy would still be shrinking.

What does this mean, another recession most likely, when it will hit is hard to predict, but I expect that the government and the fed will do what they can to ensure it hits after the mid term elections
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Why do think this?

Is it mostly because of the second wave of home foreclosures?
 
Rightists will mark this quarter of growth to be the working of the next President that they agree with.
 
Harry Guerrilla said:
Why do think this?

Is it mostly because of the second wave of home foreclosures?
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Generally the issues that caused the economic crisis still exist

The current wave of home foreclosures has not been worked through, the next is coming, along with a commercial wave. Secondly government spending at the state and local levels are being constrained and will lead to cut backs very soon (real ones not accounting tricks)

Pretty soon the UI benifits that have been extended for a long time, will stop, leading to a decline in consumer spending, and a few more job loss's. And more people unable to pay their debts.

Basically the excess's of the past have not yet been accounted for either in having the debts paid off or written off. Untill the bad debts are taken care of one way or another the economy will not be able to have healthy sustainable growth, The current growth is not healthy or sustainable as it is being funded by government debt
 
Lord Tammerlain said:
Generally the issues that caused the economic crisis still exist

The current wave of home foreclosures has not been worked through, the next is coming, along with a commercial wave. Secondly government spending at the state and local levels are being constrained and will lead to cut backs very soon (real ones not accounting tricks)

Pretty soon the UI benifits that have been extended for a long time, will stop, leading to a decline in consumer spending, and a few more job loss's. And more people unable to pay their debts.

Basically the excess's of the past have not yet been accounted for either in having the debts paid off or written off. Untill the bad debts are taken care of one way or another the economy will not be able to have healthy sustainable growth, The current growth is not healthy or sustainable as it is being funded by government debt
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Makes sense. :2wave:
 
Anyone recall the good news that came out about the economy 2002-2007, which was all shot down by Democrats/leftists for whatever reason they could find?

Where are those Democrats/leftist nay-sayers now?
 
Goobieman said:
Anyone recall the good news that came out about the economy 2002-2007, which was all shot down by Democrats/leftists for whatever reason they could find?

Where are those Democrats/leftist nay-sayers now?
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Right here

Saying this is not a real recovery but one funded by government debt.
 
Goobieman said:
Anyone recall the good news that came out about the economy 2002-2007, which was all shot down by Democrats/leftists for whatever reason they could find?

Where are those Democrats/leftist nay-sayers now?
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Ahh.... Nothing like the partisans to politicize economic growth.
 
Lord Tammerlain said:
Right here

Saying this is not a real recovery but one funded by government debt.
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It's pretty much the same here. Besides, growth isn't as important as unemployment during big economic downturns such as this. Growth can be spurred by getting banks back and Wallstreet going, but that doesn't mean the common person has benefited. Unemployment is a better indicator of that (after all, the Fed's job is to balance unemployment and inflation, not growth and inflation).

Since we've done nothing real to fix the problem or get us out of the depression, I wouldn't put much faith in this bump to be much of anything.
 
Lord Tammerlain said:
Generally the issues that caused the economic crisis still exist

The current wave of home foreclosures has not been worked through, the next is coming, along with a commercial wave. Secondly government spending at the state and local levels are being constrained and will lead to cut backs very soon (real ones not accounting tricks)

Pretty soon the UI benifits that have been extended for a long time, will stop, leading to a decline in consumer spending, and a few more job loss's. And more people unable to pay their debts.

Basically the excess's of the past have not yet been accounted for either in having the debts paid off or written off. Untill the bad debts are taken care of one way or another the economy will not be able to have healthy sustainable growth, The current growth is not healthy or sustainable as it is being funded by government debt
Click to expand...

The difference between now and 2007-2008 is that banks have the "cash" necessary to whether the storm. Do i believe there could be set backs? Of course, but i do not believe the foreclosures that emerge this year will be able to force short term interbank lending rates to third quarter 2008 levels.
 
Ikari said:
It's pretty much the same here. Besides, growth isn't as important as unemployment during big economic downturns such as this. Growth can be spurred by getting banks back and Wallstreet going, but that doesn't mean the common person has benefited. Unemployment is a better indicator of that (after all, the Fed's job is to balance unemployment and inflation, not growth and inflation).

Since we've done nothing real to fix the problem or get us out of the depression, I wouldn't put much faith in this bump to be much of anything.
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And what do you view the problem to be?
 
Goldenboy219 said:
The difference between now and 2007-2008 is that banks have the "cash" necessary to whether the storm. Do i believe there could be set backs? Of course, but i do not believe the foreclosures that emerge this year will be able to force short term interbank lending rates to third quarter 2008 levels.
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I've been hearing lately that we're in a liquidity trap, so to speak.
No one wants to borrow and there are higher lender requirements.

I know of at least one bank paying people to withdraw funds.
 
Goldenboy219 said:
And what do you view the problem to be?
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Primarily lack of regulation is what drove the system to collapse in the first place. You have to fix that. After the breaking, it was further exacerbated by taking our money and giving it to all the people who had just broken the system. Thus rewarding their behavior for having done so in the first place.
 
megaprogman said:
I agree, none of this matters if people don't have jobs available to them.
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Even that great orator the USA answer to God admitted this very point, so why are all you guys getting upset?
 
Goldenboy219 said:
The difference between now and 2007-2008 is that banks have the "cash" necessary to whether the storm. Do i believe there could be set backs? Of course, but i do not believe the foreclosures that emerge this year will be able to force short term interbank lending rates to third quarter 2008 levels.
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The banks have cash now, but it is not their "cash" really it is cash provided to them by the fed

Are we likely to see a crisis like the one that hit in 2008, no, but a long period of stagnation is more then likely.

Basically the US is probably in for a decade of poor economic growth (real growth) as it has a lot of debt that needs to be paid down, both by individuals, governments and corporate.

A second issue that is going to negatively effect growth in the US is the rise of foreign countries on the world economy. Companies in the US have to compete with companies in China, India, and Brazil among others. The cost of doing business in China is far lower then doing so in the US, as China moves up the value chain, it is going to pressure the pricing power of US companies, leading to lower compensation for US workers (all levels). (This is going to effect all of the western world economies not just the US). So untill the cost of doing business in the US becomes more compititive with that in China (through China's own rising standard of living, and a stagnating one in the US, if not a decline in it) growth in the US on a per capita basis is going to be limited
 
Sure are a lot of half-empty types around here.
 
Lord Tammerlain said:
A second issue that is going to negatively effect growth in the US is the rise of foreign countries on the world economy. Companies in the US have to compete with companies in China, India, and Brazil among others. The cost of doing business in China is far lower then doing so in the US, as China moves up the value chain, it is going to pressure the pricing power of US companies, leading to lower compensation for US workers (all levels). (This is going to effect all of the western world economies not just the US). So untill the cost of doing business in the US becomes more compititive with that in China (through China's own rising standard of living, and a stagnating one in the US, if not a decline in it) growth in the US on a per capita basis is going to be limited
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Yes. This is an issue certain people just refuse to understand.
The global marketplace applies to labor, just like everything else - people all over the world are competing for your job.
 
Goobieman said:
Yes. This is an issue certain people just refuse to understand.
The global marketplace applies to labor, just like everything else - people all over the world are competing for your job.
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Which is why one reason I can not stand when people say trade is not a zero sum game.

Of course it is not a zero sum game, but it does not mean that your side will be the one to gain over the short or long term.

Michigan lost out due to auto competition from Japan and the American south east where costs were lower.

So the pie will likely get bigger with trade, it does not mean your slice will get bigger, or that it will not shrink
 
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