GDP growth better than expected. Who says this rally is not deserved?

Discussion in 'Economics' started by Kassz007, Jul 31, 2009.

  1. It will probably be revised to -3.0% when the next report is released.
  2. The slashing of inventories at a record pace of $141 billion is no doubt very bullish. The increase in the consumer's savings rate to 5.2% in Q2, the highest since 1998 is also bullish.

    Consumer spending got revised downward in Q1, and continues to contract. That is the other side of the coin.

    Confidence is key.
  3. Slashing of inventories has more to do with retailers failing to replenish stock of goods in store than anything else, no?

    How is increased savings rate bullish?

    Consumer spending continued to trend down, unemployment continues to rise...
  4. Exclude government spending and the number becomes very negative.
  5. wartrace


    A decrease of 1% from last months decrease of 6.4% is an improvement? Four straight quarters of decline in the GDP is an improvement?

    I am an unfortunate product of public schools so bear with me. I always thought "improvement" would be indicated by a change in direction towards positive territory. If the GDP number had been +.01% or better I would agree that it is improving. A continued DECLINE at a slower pace does not mean there is an improvement, does it? It just means it is getting worse at a slower pace.

    I do realize that "worse but better than it could have been" is the new "better" but technically it is not improving yet.

    The GDP has shrunk 15.5% from this time last year. Only massive government intervention has kept it from sinking further. There is a limit to government funds (hopefully).
  6. The businesses can't get credit to even acquire new inventory.
  7. Exactly. GDP = C+I+G

    G is propping up these numbers, and this quarter's numbers will be revised downward, as they have been every quarter for the last year. The government is spending like it's going out of style, and we still can't print a positive quarter. Answer to this problem = further increase in government spending. This will only insure economic problems for the coming decade.
  8. Always a possibility.
  9. If it stays at this level for 10 years straight. THEN it will be bullish :cool:
    #10     Jul 31, 2009