Q2 GDP Revised Down to 1.6%

http://www.cnbc.com/ ^

[tobyhill]

Check this headline out.

“U.S. Stocks Rise as Economic Growth Tops Estimates; 3Par Jumps”

http://www.businessweek.com/news/2010-08-27/u-s-stocks-rise-as-economic-growth-tops-estimates-3par-jumps.html

[Mom MD]

and a recovery is when Obama loses HIS job.....

[April Lexington]

Yes - unexpected. Economists were expecting a revision to 1.4%. Stock market futures are up on the unexpected good news...

First Mate: "Captain, there's a hole in the bottom of our boat!"

Captain: "How big is it?"

First Mate: "Two feet wide!"

Captain: "Whew! I was expecting three feet!"

[sport]

That means that it actually is going to be down by at least 10%. Kinda like the 5 year plans under the old Soviet Union.

[green iguana]

That pretty much sums it up.

[Mojave]

"U.S. Federal Reserve Chairman Ben Bernanke said on Friday the recovery has softened more than expected and the Fed is ready to take further steps if needed to spur the stumbling economy."

You can expect them not to expect.

[Rennes Templar]

Next month they will include as employeed all community volunteers that recieve meals or snacks as compensation.

[Buffalo Head]

A depression usually includes deflation, which is the opposite of inflation. Those two situations relate to the total money supply and the total goods and services produced.

If the money supply increases faster than goods and services produced, inflation results. Quite simply, extra money in the system just bids up the price of things in demand.

Conversely, if there isn't enough money in the system, prices have to fall to make sales. If there isn't enough money in the system, individuals can't get loans to buy homes, businesses can't borrow money to expand their business and create new jobs, etceteras. The entire economic system spirals downhill.

By the classic definition, we are entering a depression (with capital "D").

[unkus]

Buffalo Head—Thank you for the succinct reply.

[Deo volente]

The Dow is up over 100 points on the “not as bad as first feared” spin.

[Captain Peter Blood]

The real unemployment rate is north of 21%, the real number of people unemployed is north of 40 Million. You are way off on the numbers. Check Shadow Government Stats.com

[Gideon7]

if there isn't enough money in the system, prices have to fall to make sales. If there isn't enough money in the system, individuals can't get loans to buy homes, businesses can't borrow money to expand their business and create new jobs, etceteras. The entire economic system spirals downhill.

How can deflation happen if the Treasury is printing money by the bucketload to pay for the deficit?

(This is not a rhetorical question or a criticism of your post. You may very well be right about deflation. I just don't understand how it can happen under the current circumstances.)

[Buffalo Head]

The fact is the Treasury is not "... printing money by the bucketload to pay for the deficit?"

They have been borrowing it from China. To print money as you suggest would cause hyper-inflation and the interest on the national dept would be unpayable. That will happen anyway on our current course, it is just being delayed by fiscal games.

[Ghost of Philip Marlowe]

Not sure why you’re being belligerent.

My numbers are fine.

The U-6 is just over 17%.

Some cities have 20-30%.

[Captain Peter Blood]

Well I have say I believe that the U6 numbers are worse than anyone thinks.
Here is the link : http://www.shadowstats.com/
John Williams number for U6 is actually around 22%.
No matter how you cut it it's all pretty bad and getting worse.
I think I read that the % of people with full time jobs is around 68%. There is just a lot the MSM will not tell the truth on.
Bernanke is blowing smoke on saying in his recent speech The Fed stands ready to do more. Fed is out of bullets and there is very little he can do. Witness the market on his worthless remarks today.
The one thing I am still not sure on is Inflation or Deflation. The things I am reading keep talking about Deflation. I guess we let things play and start over when the Crash comes. Take care.

[Grampa Dave]

Lord HaHa, aka 0b0z0 is trending down faster than the Titanic after meeting the iceberg.

Thanks to Flag_This for the great art work!