Someone Is Dead Wrong About The Economy

Question Mark Photo By Salazar210 at Wikipedia

As we reported earlier, for some today’s economic humiliation of a -1.0% GDP print was merely more good news, and as Goldman announced, weaker than expected Q1 GDP will merely lead to a greater than expected rebound in Q2 GDP.

Here are some other takes:

  • ING: “Overall, this isn’t a terrible outcome”; Sees 2Q GDP at 4.5% annual rate “with inventory rebuilding likely to play its part”
  • Strategas “GDP -1%, old news….mostly noise”
  • Bank of Tokyo’s Chris Rupkey: “2Q growth seen at nearly 4%… Weak 1Q is stone cold dead as an indicator of where the economy is headed.”
  • Newedge: “Prospects for the near future remain relatively optimistic” Sees GDP accelerating to “around 3%” in 2Q as well as second half of year

And of course, the “best” take comes from the White House economic advisor Jason Furman, who said that March, April data “provide a more accurate and timely picture of where the economy is today” and show recovery from recession… A recession which ended 5 years ago mind you. He adds that GDP figures can be volatile; “it is important not to read too much into any one single report.” Especially if the report shows a 2% contraction when excluding the benefits of Obamacare.

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1 thought on “Someone Is Dead Wrong About The Economy”

  1. IF the economy has gone down the toilet, then a lot of things will have to change.
    Our entire system is based on people making money and paying taxes. The key is discretionary income going down and causing a depression.
    IF people are unemployed, they do not pay taxes. The entire system of government based on those taxes will now be going into debt. That is directly responsible and has the same proportion of results.
    IF government pays for things with counterfeit money(money with no commodity base), then you have more money chasing fewer goods. This leads to inflation or should lead in that direction.
    IF the middle class has no discretionary income to purchase things, then no matter how much the government spends, retailers will go bankrupt and go out of business.
    IF government mandates everyone have health care at a loss in discretionary income of say 20-40% then there is no discretionary income to spend. Normal discretionary income is at or about 10% of what you net. In a lot of cases this health care insurance bankrupts the individual.
    People that tithe know all about the magic number 10%. Often they have adjusted their budgets so that the tithe is paid first. That income being lost will cause the churches to go under financially. It is all ready happening all over America. These people are likely to survive by using the tithe money to keep themselves going.
    I think we can trace the depression directly to the amount of extra funds the Demoncrats have pushed onto the American Public in the form of Obamacare.
    And that in a little word(IF) is what I believe is going on in everyday, middle and lower class(financially) America today.
    The real question is what are these people going to do about it in November . . .

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