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GDP Shows Surprise Drop for U.S. in Fourth Quarter (unexpected alert)
CNBC ^

Posted on 01/30/2013 5:46:18 AM PST by Perdogg

The U.S. economy posted a stunning drop of 0.1 percent in the fourth quarter, defying expectations for slow growth and possibly providing incentive for more Federal Reserve stimulus.

(Excerpt) Read more at cnbc.com ...


TOPICS: Breaking News; Business/Economy
KEYWORDS: contraction; defense; economy; spending; unexpected
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1 posted on 01/30/2013 5:46:23 AM PST by Perdogg
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To: Perdogg
The economy shrank from October through December for the first time since the recession ended

I find this statement amusing, for some reason.

2 posted on 01/30/2013 5:51:52 AM PST by skeeter
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To: skeeter

Stop buying imported goods.

Return jobs to America.


3 posted on 01/30/2013 5:53:02 AM PST by Cringing Negativism Network
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To: Perdogg

Wow, the start of another ‘Bush Resession’!


4 posted on 01/30/2013 5:58:54 AM PST by norwaypinesavage (Galileo: In science, the authority of a thousand is not worth the humble reasoning of one individual)
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To: Perdogg

Stay tuned...
This number will be corrected shortly. Any record of it ever having been reported will then be erased by the Ministry of Truth.


5 posted on 01/30/2013 5:59:22 AM PST by Ouchthatonehurt
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To: Perdogg

If GDP keeps going down all the time, I would think the last four years of stimulus hasn’t worked. Why does the Fed need more stimulus?


6 posted on 01/30/2013 5:59:29 AM PST by newsfollower
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To: Perdogg

When business owners realized that the Marxist was re-elected by the Takers, the Makers pulled in their chips.

The Q1 results come in in March. By then, the phony bullish numbers that Wall St. puts out every Jan. will show a bust, as they have the past three years.

Figures lie and liars figure: The motto of the Obama administration.


7 posted on 01/30/2013 6:00:00 AM PST by txrefugee
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To: newsfollower

The stimulus is working - in Asia.


8 posted on 01/30/2013 6:00:18 AM PST by Perdogg (Mark Levin - It's called the Bill of Rights not Bill of Needs)
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To: Perdogg
pwunexpectedly photo pwunexpected_zpsbcb6de3a.jpg
9 posted on 01/30/2013 6:00:35 AM PST by jiggyboy (Ten percent of poll respondents are either lying or insane)
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To: Perdogg

This is terrible, we need to print money faster to keep up with demand!!


10 posted on 01/30/2013 6:01:13 AM PST by exit82b
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To: skeeter
since the recession ended

Yea, we all must have missed that the recession ended.

Waiting for the media to put a positive spin on this GDP number.

11 posted on 01/30/2013 6:01:13 AM PST by Rational Thought
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To: newsfollower
the last four years of stimulus hasn’t worked. Why does the Fed need more stimulus?

They can make it up in volume.

Or, in other words, if banging our heads is not working, we should bang our heads even harder.

12 posted on 01/30/2013 6:01:29 AM PST by C210N (When people fear government there is tyranny; when government fears people there is liberty)
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To: Cringing Negativism Network

With 3-D Printing and China hitting the LTP, jobs may be coming home.


13 posted on 01/30/2013 6:01:37 AM PST by Perdogg (Mark Levin - It's called the Bill of Rights not Bill of Needs)
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To: Perdogg

how UNEXPECTED!

lol


14 posted on 01/30/2013 6:02:44 AM PST by TexasFreeper2009 (Obama lied .. the economy died.)
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To: Perdogg

Wow it looks like that suits gold and silver just fine — gold is straight up twelve bucks since that came out.


15 posted on 01/30/2013 6:03:04 AM PST by jiggyboy (Ten percent of poll respondents are either lying or insane)
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To: Perdogg

LTP?


16 posted on 01/30/2013 6:03:28 AM PST by Cringing Negativism Network
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To: skeeter

“...The economy shrank from October through December for the first time since the recession ended

I find this statement amusing, for some reason....”

Actually, it’s outright hilarious. Just another classic example of just how brain-diseased liberals are. They actually believe the recession ended. Now, they’re looking down the economic tunnel and they see light at the end of it, but in reality it’s the Obama Depression Train coming at em full throttle with old Omugbee himself at the helm. Can you spell collapse?


17 posted on 01/30/2013 6:03:28 AM PST by lgjhn23 (It's easy to be liberal when you're dumber than a box of rocks.)
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To: skeeter

Well, this will certainly come as a shock to my father, who believes that the economy has been recovering for some time and that unemployment rapidly is decreasing.

I am guessing that tha MSM and the Administration will find some “plausible reason” that they can circulate to the steeple, and it will be seen as “just a bump in the road.”


18 posted on 01/30/2013 6:03:59 AM PST by MNGal
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To: Cringing Negativism Network
Lewis Turning point
19 posted on 01/30/2013 6:04:37 AM PST by Perdogg (Mark Levin - It's called the Bill of Rights not Bill of Needs)
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To: Perdogg

Guess they shouldn’t have raised our taxes.


20 posted on 01/30/2013 6:05:39 AM PST by DownInFlames
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To: Perdogg

Thanks.


21 posted on 01/30/2013 6:07:32 AM PST by Cringing Negativism Network
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To: DownInFlames

...or trying to add 11 million more workers where there are no jobs.


22 posted on 01/30/2013 6:08:26 AM PST by Perdogg (Mark Levin - It's called the Bill of Rights not Bill of Needs)
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To: Perdogg

20 million new amnesty citizens will boost the economy.


23 posted on 01/30/2013 6:09:14 AM PST by umgud
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To: Perdogg

The American economy is hopelessly in the tank due to Obama’s communist aspirations, and everone knows it except for a few fuzzy-thinking eggheads who can’t be bothered to look up from their computer keyboards for five minutes.


24 posted on 01/30/2013 6:09:49 AM PST by Jack Hammer
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To: DownInFlames

Taxes went up January first.

That wouldn’t be included in the fourth quarter of 2012.

So yes, first quarter 2013 could be even worse.


25 posted on 01/30/2013 6:09:56 AM PST by NeoCaveman (Let it burn, let it burn, let it burn)
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To: Rational Thought
Waiting for the media to put a positive spin on this GDP number.

If they were true to their 2000-2008 form they'd lead with this story, and follow it up with Gallup's poll showing Obama tied with W as the least popular second term president in recorded history.

As they are, though, I'm listening to ABC News lead with a gun story and following up with a story quoting an economist saying this contraction is indicative of a recovering economy.

As I type this, no sh*t.

26 posted on 01/30/2013 6:10:25 AM PST by skeeter
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To: DownInFlames

1st Quarter GDP is going to be even worse. I can see it in my business right after the tax increases hit customers paychecks.


27 posted on 01/30/2013 6:11:49 AM PST by jimbo123
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To: Cringing Negativism Network

No, american prosperity rests on the freedom to deal globally


28 posted on 01/30/2013 6:12:18 AM PST by bert ((K.E. N.P. N.C. +12 .....The fairest Deduction to be reduced is the Standard Deduction)
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To: Perdogg
or trying to add 11 (at least) 30 million more workers where there are no jobs.

Made your post more accurate.....

29 posted on 01/30/2013 6:13:28 AM PST by Rational Thought
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To: Perdogg
The economy shrank from October through December for the first time since the recession ended, hurt by the biggest cut in defense spending in 40 years,

The 0bama regime may have declared "the recession ended", but no one told the economy. I would expect the drop in GDP this quarter to be almost precipitous due to the tax increases and 0bamascare impacts. Of course the bureaucrats in the regime will be caught off guard and it will once more be "UNEXPECTED".

30 posted on 01/30/2013 6:14:11 AM PST by The Sons of Liberty (It's not "GUN CONTROL"! It's "PEOPLE CONTROL"!)
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To: Ouchthatonehurt
"Stay tuned... This number will be corrected shortly. Any record of it ever having been reported will then be erased by the Ministry of Truth."

You should listen to the talking heads on CNBC. With the exception of Rick Santelli, the meme is that all is good. The private sector is growing. Everything that counts in the economy is improving. This is a one off, etc. Only Santelli is saying that the number is the number and isn't it interesting that it now comes out.

31 posted on 01/30/2013 6:14:47 AM PST by Truth29
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To: Perdogg

I sell industrial supplies and I can tell you last quarter sucked and so far this quarter is worse.


32 posted on 01/30/2013 6:15:03 AM PST by pgkdan ( "Those who hammer their guns into plows will plow for those who do not." ~Thomas Jefferson)
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To: Perdogg

Taxes went up on January 1 and gasoline just shot up $.25 per gallon over the last two days. The economy is just fine. I’m sure the first quarter of the new Obama administration is going to be rosy!

Brace for impact.


33 posted on 01/30/2013 6:17:02 AM PST by Obadiah (We must commit to remove every Senate Blue-dog Democrat from office in 2014!)
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To: Perdogg

.1 percent is not a stunning drop. It does not provide any incentive for more “stimulus.”

There have been 3 “stimulus” packages. Of course they could not have worked. All they could have done was lower the value of money, so that the reported numbers would have risen, while the actual numbers in terms of value would not have changed.

So now the idiots want another “stimulus.”

Typical. When a liberal solution fails, as they all do, liberals always demand a strengthening of the solution that failed, and that will fail too.


34 posted on 01/30/2013 6:18:33 AM PST by I want the USA back
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To: Perdogg

The FED is juicing the stock market.


35 posted on 01/30/2013 6:18:56 AM PST by existentially_kuffer
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To: Perdogg

“We need more cowbell!!!”

- Ben Bernanke


36 posted on 01/30/2013 6:19:38 AM PST by Uncle Miltie (Of the government, by the government, and for the government.)
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To: Perdogg

Taxes work! Heil Obama!


37 posted on 01/30/2013 6:20:15 AM PST by UnwashedPeasant
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To: Perdogg

Analysis from Business Insider:

People will be stunned to see that today’s GDP report went negative for Q4... the first negative print since The Great Recession.

But the report isn’t that bad. In fact it was arguably good.

For one thing, most of the collapse was due to a stunning fall in military spending. That’s not good for GDP, but it doesn’t reflect the real underlying strength of the economy.

And it’s mostly due to war drawdown. That’s a good thing for everyone!

There was also a big decline due to a reversal of big inventory buildups.

The change in real private inventories subtracted 1.27 percentage points from the fourth-quarter change in real GDP after adding 0.73 percentage point to the third-quarter change. Private businesses increased inventories $20.0 billion in the fourth quarter, following increases of $60.3 billion in the third and $41.4 billion in the second.

Seeing a decline in inventory buildups isn’t that big of a deal really. This number always goes back and forth.

What’s key is that the numbers that really reflect the strength of the economy were much better.

Personal consumption, fixed investment, and equipment/software all grew nicely. This is the real economy humming along.

Real personal consumption expenditures increased 2.2 percent in the fourth quarter, compared with an increase of 1.6 percent in the third. Durable goods increased 13.9 percent, compared with an increase of 8.9 percent. Nondurable goods increased 0.4 percent, compared with an increase of 1.2 percent. Services increased 0.9 percent, compared with an increase of 0.6 percent.

Real nonresidential fixed investment increased 8.4 percent in the fourth quarter, in contrast to a decrease of 1.8 percent in the third. Nonresidential structures decreased 1.1 percent; it was unchanged in the third quarter. Equipment and software increased 12.4 percent in the fourth quarter, in contrast to a decrease of 2.6 percent in the third. Real residential fixed investment increased 15.3 percent, compared with an increase of 13.5 percent

So, less war, more business investment. This was a good report.

Read more: http://www.businessinsider.com/todays-shock-negative-gdp-report-really-wasnt-that-bad-2013-1#ixzz2JT5OoFJR


38 posted on 01/30/2013 6:20:19 AM PST by Wyatt's Torch (I can explain it to you. I can't understand it for you.)
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To: skeeter

At this point, media reporting is the best laugh I get on a daily basis.


39 posted on 01/30/2013 6:20:44 AM PST by Rational Thought
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To: Perdogg

Whew.. it sure is a good thing our esteemed leaders passed that tax hike on the “filthy rich”....

Oh, wait...


40 posted on 01/30/2013 6:25:26 AM PST by ScottinVA (Gun control: Steady firm grip, target within sights, squeeze the trigger slowly...)
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To: Perdogg

Obviously, there has not been enough stimulus spending. We need to give another Trillion to Obama’s campaign donors, ASAP.


41 posted on 01/30/2013 6:25:26 AM PST by UnwashedPeasant
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To: Perdogg

re: “The economy shrank from October through December for the first time since the recession ended, hurt by the biggest cut in defense spending in 40 years. . .”

This sentence is the spin of the story. CNBC says shrinking of the economy is due to a drop in “government spending” for Defense - yeah, for Defense, which the libs hate, but the message to low information voters is - reduce government spending and you’ll “hurt” the economy.

So, we’ll just make up for that loss in defense spending by increasing it on all those needed government social programs.


42 posted on 01/30/2013 6:26:35 AM PST by rusty schucklefurd
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To: bert

With all due respect, American prosperity has rested on the freedom to deal globally for the last two decades.

Two decades of time, during which our industrial heartland has MOVED TO CHINA. Through American industry’s policies, but also because of the policies of China.

De-industrializing what had previously been the single country with the most good to do for the most coutries.

Industrializing a massive (and rather racist) communist giant.

Sorry.

I pick America. Bring back American industry now.


43 posted on 01/30/2013 6:27:01 AM PST by Cringing Negativism Network
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To: Perdogg

It’s very important to note that the big shots “front-loaded” Q4 2012 with all kinds of deals, purchases, and salary tricks that were originally scheduled for 2013.

Q1 2013 has already been written off by financial writers for that reason — and now it suddenly looks like even the bean-counters and definition whores will have to admit, when the next GDP number comes out, that we’re in recession.


44 posted on 01/30/2013 6:29:27 AM PST by jiggyboy (Ten percent of poll respondents are either lying or insane)
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To: Perdogg

For those who pay attention, the federal government goosed the economy in the third quarter. Their increased spending was the largest part of the third quarter GDP increase. Now that the election is over, the spending declined. Hence the decline in GDP.

The Fed can do what they want. However, it will be like pushing on a string.


45 posted on 01/30/2013 6:29:48 AM PST by stoneyhll (If I am to err, let me err on the side of freedom)
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To: Perdogg
The surprise contraction could raise fears about the economy's ability to handle tax increases that took effect in January and looming spending cuts.

The "spending cuts" may loom, but that's all they will do.

What a joke on us. Ha ha.

46 posted on 01/30/2013 6:32:14 AM PST by upchuck (America's at an awkward stage. Too late to work within the system, too early to shoot the bastards.)
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To: Perdogg

Gee, I wonder if the drop in Q4 GDP growth is because imaginary growth was reported pre-election.


47 posted on 01/30/2013 6:32:44 AM PST by Chewbarkah
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To: NeoCaveman
So yes, first quarter 2013 could be even worse.

What?? How could that be? Warren Buffett said jacking up taxes on the rich would "improve the morale" of the middle class!

48 posted on 01/30/2013 6:32:52 AM PST by ScottinVA (Gun control: Steady firm grip, target within sights, squeeze the trigger slowly...)
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To: Rational Thought; Perdogg
At this point, media reporting is the best laugh I get on a daily basis."

It is funny...look what was posted one minute ago:

Beneath The Surface, Today's GDP Report Was Actually Good

"People will be stunned to see that today's GDP report went negative for Q4... the first negative print since The Great Recession."

But the report isn't that bad. In fact it was arguably good."

49 posted on 01/30/2013 6:33:10 AM PST by blam
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To: Wyatt's Torch

I’m not even going to to click on the link before guessing that Joe Wiesenthal, the guy who can make Larry Kudlow look like Noriel Roubini, is the author of this transparently propagandistic happy-talk.


50 posted on 01/30/2013 6:33:22 AM PST by jiggyboy (Ten percent of poll respondents are either lying or insane)
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