Headed for a recession

[asterism]

Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- decreased at an annual rate of 2.9 percent in the first quarter of 2014 according to the "third" estimate released by the Bureau of Economic Analysis. In the fourth quarter of 2013, real GDP increased 2.6 percent.

http://content.govdelivery.com/atta...++First+Quarter+2014+%28Third+Estimate%29.pdf

Funny how these terrible results are whitewashed twice and then virtually ignored.

Early indicators of Q2 2014 do not look good either, results are tracking lower than estimates:

Overall Economy - NYTimes.com

 

[Rozman]

The Libs here are a bit quiet about this....
Maybe they are hoping no one noticed...

 

[Meister]

Damn Bush!!!!!
This is all the republicans fault you guys know it!

[sarcasm]

 

[Meister]

Uncertainty in this administration's policies regarding taxes and regulations are keeping those who have the big bucks from investing.
No person or corporation wants to invest in a losing proposition.

 

[theHawk]

Where's a good old fashioned "More GOOD News" thread by one of our resident Obam-bots?

It's hilarious when the media tries to blame it on a "severe winter" yet can't site any facts to back it up.

Gee, couldn't have anything to do with the huge burden of people having to pay for Obamacare would it?

Final US first quarter GDP contracts

 

[Zander]

2.9% is a SEVERE decline. I am amazed that the market did not collapse on the news.

In the first quarter of 2011, it was negative by less than half as much. The S&P 500 plunged 19% in the next quarter, the decline only halted when the Fed rushed in with QE2.

GDP was negative by the same percentage in 2008, bounced back one quarter before going negative again. But that was way too late. The severe 2007-2009 bear market was already underway.

 

[Stephanie]

They have us right where they want us I guess

now it's move in for the kill

 

[SteadyMercury]

Funny how these terrible results are whitewashed twice and then virtually ignored.

I don't understand this. At conclusion of every quarter they make an early estimate of GDP, and it always gets revised as additional data comes in. Sometimes it is revised up, sometimes it is revised down. Q1 was surely one of the larger downward revisions we've had, but where does the whitewash angle come in?

Also = nothing was virtually ignored the big downward revision on front page news you'd have to have been living under a rock to not see if you if consume news media.

 

[Pennywise]

The recession never ended. The "stimulus" was supposed to be for infrastructure but all it was was a Union Thug payoff.

We couldn't be more fucked. America is done.

 

[jwoodie]

The recession never ended. The "stimulus" was supposed to be for infrastructure but all it was was a Union Thug payoff.

We couldn't be more fucked. America is done.

Bingo. We are living on a low interest rate bubble that will burst when the Yuan becomes the world's reserve currency. We will then be forced to devalue the dollar, borrowing costs will skyrocket and means-tested rationing of essential goods and services will begin.

 

[eagle1462010]

It's a bubble machine, inflated by the QE's.........

They are borrowing just to pay Margin again........

As soon as the Fed pulls the money the Market will go down, down, and down.

I doubt they'll pull the plug before the elections though.

 

[jwoodie]

The election of a GOP Senate will bring a brief reprieve followed by a bigger crash, ironically allowing the Dems to blame them. (Everybody hates the messenger.)

And the band plays on...

 

[SteadyMercury]

When will everything burst?

 

[Toro]

We are not headed towards a recession.

 

[The Rabbi]

We are not headed towards a recession.

I disagree. Personal spending last quarter was up a miniscule amount and accounting for inflation it was up none at all. Business investment was down.
Where is the growth going to come from for this quarter? There isnt any. Additionally productivity was down. Companies have made money over the past several years by reducing costs, not increasing top line sales. That has to end at some point. And it just did. With corporate profits not growing, consumers not spending, business not investing there is only way for the economy to go, and that's down.
Another quarter of negative growth and it's a recession.

 

[guno]

They have us right where they want us I guess

now it's move in for the kill

Yes you living in a trailer park I m sure you have stocks and bonds!!

 

[JakeStarkey]

Yeah, Toro, but not as big as last one, I think

However, if we have a good summer GDP then some hope the bubble will last until next spring

 

[jillian]

so let's get this straight... the right is intentionally trying to undermine public confidence in the economy again?

can't say i'm surprised.

 

[The Rabbi]

so let's get this straight... the right is intentionally trying to undermine public confidence in the economy again?

can't say i'm surprised.

The public has no confidence in the economy.

 

[SteadyMercury]

To me it seems more of the usual message board routine... people predicting economic catastrophe but then you can never pin them down on when it will happen. It is a lot easier to sit there year after year saying the end is at hand, eventually you get to jump up and say "told you so" when you're the broken clock.

The rest of the time they miss out on all the upsides of investment gains.