Posted on 01/30/2013 10:44:07 AM PST by ExxonPatrolUs
Negative economic growth in the fourth quarter provided a scary headline to start Wednesday's trading but probably little else in market impact.
In the best light, the headline drop of 0.1 percent in gross domestic product masked stronger internals regarding consumer and business spending as well as progress in the housing recovery. (Read More: GDP Shows Surprise Drop for US in Fourth Quarter)
At its worst, the bad news merely provides more cover for a Federal Reserve intent on churning out stimulus until it determines the economy can survive on its own.
"I don't think this negative number is going to have much legs," said Jim Paulsen, chief market strategist at Wells Capital Management in Minneapolis.
The darker scenario, in fact, is actually bullish for stocks, which have ridden the wave of $3 trillion in central bank liquidity to eclipse five-year highs and push towards a new record.
Fed Chairman Ben Bernanke "has to keep the economy high as a kite. He has to make sure we don't sober up and realize how screwed up we are," said Peter Schiff, founder and CEO at Euro Pacific Capital in New York. "We don't have a real recovery. It's an illusion, it's a drug-induced high. The minute you take away the drugs we come down. We can't stop easing, ever."
(Excerpt) Read more at m.cnbc.com ...
The problem is that some people will believe anything.
Fourt quarter is supposed to be Holiday spending. GDP went down. The real smack down should happen when first quarter comes out in April. It is going to get ugly.
The decline occured due to a trade imbalance, GDP fell due to a fall in exports for the first time in 9 quarters.
Of course, this would never be said if the President were Republican.
This was the first thing that struck me, also. Nov/Dec, that's holiday shopping. That's Christmas. We "contracted" during that time? I'm thinking it is worse than I thought, and I am no Pollyanna; I already thought they were blowing sunshine up my skirt.
Also, don't most retailers depend on Christmas to make their profit for the year?
What will be Obama’s December unemployment figure lie?
Of course, this would never be said if the President were Republican.
Liberals hate Christians for the most part but expect them to keep the economy running by celebrating Christmas. It is only a matter of time before Christians decide to stop allowing themselves to be used like this. I for one bought 3 Christmas gifts this year and those were for the little kids who really are innocent in all this economic stuff. Other than that, no tree no lights and a very small dinner. Screw the liberals and their economy.
The fed did just that very things in the FOMC statement 10 minutes ago.
FactSet consensus estimate is +155K and 7.8%
My personal guess is +125K and 7.9%
Actually, the number is only 2. We're half way there.
White House: GOP responsible for shrinking economy (Carney)
http://www.freerepublic.com/focus/f-news/2983513/posts
Why This Is ‘Best-Looking’ GDP Drop You’ll Ever See?
Because we have a democrat in the White House. If this were Bush we’d be on the precipice of another great depression.
FYI - a recession is defined as three consecutive quarters of negative growth. That’s one
That’s one quarter the press will admit was negative growth. I’m not so sure we haven’t already had three consecutive quarters of negative growth.
Remember the leftist media bleating about the horrors of 5.5% unemployment under Bush?
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