They are going to look back at us like we look back at apes

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Davos's picture
Davos
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They are going to look back at us like we look back at apes

Recession unofficially ends as economy grows 3.5 percent

WASHINGTON (Reuters) - The U.S. economy grew in the third quarter for the first time in a year, beating market expectations, as consumer spending and new home-building rebounded, signaling the end of the worst recession in 70 years. 

The Commerce Department, in its first estimate of third-quarter gross domestic product on Thursday, said the economy grew at a 3.5 percent annual rate, the fastest pace since the third quarter of 2007, after contracting 0.7 percent in the April-June period. 

The growth pace in GDP, which measures total goods and services output within U.S. borders, was above market expectations for a 3.3 percent rate. The economy last grew in the second quarter of 2008. 

"Better than expected GDP is confirming that the Great Recession has ended," said Kevin Flanagan, fixed-income strategist for Global Wealth Management at Morgan Stanley in Purchase, New York.

There are a few indicators for a depression, unemployment north of 20%-25% is certainly one of them. A 31 hour work week for full timers isn't "right" either. Yet our economists and media choose the most cooked indicator - GDP.

emhswm's picture
emhswm
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Re: They are going to look back at us like we look back at ...

GDP includes Gov't Spending, which of course is unsustainable and not indicative of a recovering economy

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Thomas Hedin
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Re: They are going to look back at us like we look back at ...

Then maybe we should start learning how this system really works, what's wrong with it, and what we can do to fix it?

http://www.wealthmoney.org/media/20081002twohour.mp3

 

 

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Davos
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Re: They are going to look back at us like we look back at ...
Thomas Hedin wrote:

Then maybe we should start learning how this system really works, what's wrong with it, and what we can do to fix it?

http://www.wealthmoney.org/media/20081002twohour.mp3

I know how the system really works. Why don't you start a wealth money thread for your link there.

emhswm's picture
emhswm
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Re: They are going to look back at us like we look back at ...

Federal government spending increased 7.9%, after rising 11.4% in the second quarter. State and local government outlays fell 1.1%, after going up by 3.9% in the second quarter.     - WSJ

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jms2112
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Re: They are going to look back at us like we look back at ...

HAR HAR - good title!!  yes they wil...

JAG's picture
JAG
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End the Crisis: Donate to Goldman Sachs Now

Ahhh....the recession is now officially over...now we can get on with the depression.

I love Nate's take on this:

GDP at 3.5%, eh? Does anyone feel a little bit played by the criminals at Goldman? Uh, huh, if you were following our market thread then you will know that Frank, Myself, and others saw the set up coming following GS’s analyst’s lower expectation calling for 2.7% growth. Turns out it was a set up… they drove the market down only to whipsaw the people who remained short or exited prematurely.

 

Have you ever noticed that good, honest, and reputable people in the investment world disclose their positions when they issue statements or reports? You know, at the end of the business news report, or at the end of Denninger’s “Market Ticker?” That's where you'll see, "No related positions," or something like that to disclose what their conflicts might be.

 

Yet, when you get a market moving “update” from Goldman Sachs, do they reveal their positions? Of course not, don’t be silly. They are not only not regulated by anyone with any teeth, they are the government and KNOW that they can get away with anything - and they do. Heck, they sell billions of dollars worth of WORTHLESS derivatives to municipalities around the globe while betting against the very products they are selling! Cops? Don't be silly.

 

And you might screem, “BUT THAT’S NOT RIGHT!” And you would be right. You would also be right in assuming that there was NO REASON for GS to publish such a bad call - other than manipulating the markets. Turns out that the consensus was actually right in running up their expectations to 3.5%, of course they and the government all reside in Wonderland, where Nate’s B.S. flag is flying at full mast.

Those boys at GS are good.....this little move should set them up perfectly to "take the pot" in what will be a magnitude 8 de-leveraging earthquake. And when the dust settles, GS will be sitting with all the dollars, and each dollar that they hold will be worth 30-40% more than it is today. And on top of that, they will have generated the need for another bailout and another round of inflationary policy and its corresponding inflation-trade. 

Of course we could end all this by just giving them our life savings now instead of later. 

End the Crisis: Donate to Goldman Sachs Now! Surprised


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SteveS
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Re: They are going to look back at us like we look back at ...

Why is it they don't call a recession until after many months of declines, yet one month of cooked books signals the end?

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docmims
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Re: They are going to look back at us like we look back at ...

Last bounce up to DOW climb aboard the Goldmann Sachs express!!  Lock on that last 10 percent blowoff before the slide to dow 4000!  Anyway, as Nate says at economicedge.blogspot.com linked above the improvement was almost purely temporary government spending and cash for clunkers which were Quadrupled for the "annualized" 3.5 percent.  Those Millions of unemployed behind the curtain?  Pay no attention to them!!  Believe your government!  Move along, nothing to see here!

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xraymike79
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Re: They are going to look back at us like we look back at ...

They are going to look back at us like we look back at apes

There are 2 economies in the US. The Economy of the WashDC-Wall St CoDominium and the Economy of Real People.
The first economy did, has been doing and will, for a several more seasons, continue to do very well. These are boom times in the CoDominium Economy and all the metrics of income and power for the Bosses are up.
Wall St bonuses? Up. Wall St strutting? Up. Wall St conspicuous consumption? Up. Access to free liquidity? Up.
WashDC power? Up. WashDC privileges? Up.WashDC malallocation of resources?Up. WashDC statistical fraud? Up.
Truly the CoDominium Economy did very well indeed in the 3rdquarter and the Govt has the statistics( not facts, facts are a different thing entirely) to prove it.

The Real People Economy ,however, continues to compress and the metrics of misery show it. Real after tax disposable income? Down. Jobs? Down. Credit access? Down. New business formation?Down. Real net worth? Down.

The statistics of the Govt and the facts of real people are in opposition. So, what should you believe?
According to the MSM , Govt statistics are the truth, the whole truth and nothing but the truth and facts are irrelevant. In USA 2009, Orwell and Kafka have triumphed.

Just as in Iran it is a crime to question a poll, so in the People's Republic of America it is a deep transgression to question Govt statistics.

http://seekingalpha.com/article/169828-gdp-is-better?source=commenter

 

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