GDP up 5.7% in the last quarter

Discussion in 'Current Events' started by Meister, Jan 29, 2010.

  1. Meister
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    Meister VIP Member Supporting Member

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    This is some good news for the economy. The highest its been in 6 years, so we should see lower unemployment to follow?


    Washington, Jan 29 2010 January 29 - US GDP rose at annualized rate of 5.7% in the fourth quarter, the largest quarterly growth since GDP grew 6.9% in the third quarter of 2003, the Commerce Department reported today. Economists had expected GDP to increase by 4.5% for the Q4's advanced estimate, after final revisions to Q3's economic activity indicated a 2.2% growth rate. This advanced estimate marks the second consecutive quarterly growth for GDP, after having contracted for four consecutive quarters since Q3 of 2008, suggesting economic activity has initiated a platform for continued modest growth. Over the year, GDP has fallen 2.4%.
    US ECON: Adv 4Q GDP Up 5.7% Vs 4.5% Exp, Core Up 1.4% - CNBC
     
  2. Maple
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    Maple Senior Member

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    News Release: Gross Domestic Product

    Real gross domestic product -- the output of goods and services produced by labor and property
    located in the United States -- increased at an annual rate of 5.7 percent in the fourth quarter of 2009,
    (that is, from the third quarter to the fourth quarter), according to the "advance" estimate released by the
    Bureau of Economic Analysis. In the third quarter, real GDP increased 2.2 percent.

    The Bureau emphasized that the fourth-quarter advance estimate released today is based on
    source data that are incomplete or subject to further revision by the source agency (see the box on page
    4). The "second" estimate for the fourth quarter, based on more complete data, will be released on
    February 26, 2010.

    The increase in real GDP in the fourth quarter primarily reflected positive contributions from
    private inventory investment, exports, and personal consumption expenditures (PCE). Imports, which
    are a subtraction in the calculation of GDP, increased.

    Anyone wanna take the bet that this is going to be revised downward? I will take that bet anyday. There still are no jobs and there is no such thing as a job-less recovery.
     
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    Last edited: Jan 29, 2010
  3. Skull Pilot
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    Skull Pilot Platinum Member

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    Don't forget to subtract the nearly 50% of that growth that was swallowed up by the government. So we really only saw 2.85% of that in the real world
     
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  4. Truthmatters
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    Truthmatters BANNED

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    Yes because everyone knows that unemployment is a lagging indicator.

    The business sector has to see a reason to HIRE more people. If they start seeing numbers like this and feel them on the ground of their business then they are willing to hire another employee intstead of stretching the employees they have to cover the work.

    The cold hard facts are that the stimulus worked and most economists agree.

    What we need to be watching for is a double dip.

    Good thing the stimulus saveds some of its bang for the coming months to help sustain this good news.
     
  5. Meister
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    Meister VIP Member Supporting Member

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    I'm wondering why unemployment numbers that came out yesterday were higher than expected? Something in this puzzle isn't fitting....why?
     
  6. Meister
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    Meister VIP Member Supporting Member

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    I would hold on to your panties, truth. Something is amiss on this, there is something going on that just isn't fitting into the equation.
     
  7. uscitizen
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    uscitizen Senior Member

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    Since a large part of that GDP growth was because of increased oil costs that helps us consumers to be able to pay more money. A good thing?
     
  8. Skull Pilot
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    Skull Pilot Platinum Member

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    Don't forget that government has been the only sector of the economy that is growing right now.

    That can't be good either because when the bill comes due, we"ll all be hoping we have some change left in our pockets.
     
  9. uscitizen
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    uscitizen Senior Member

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    Gummit spending has been our main "growth" for years.
     
  10. Paulie
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    Paulie Platinum Member

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    It's almost entirely government spending of money we didn't even have to begin with. That's not real growth.

    That's like taking out a loan at the bank for $50k, and saying you're $50k richer.
     
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