The GDP came in this morning for Q4 at 3.2% For all of 2010, the GDP grew at 2.9% That was the best quarterly showing in a Year. The 2.9% annual rate was the highest since 2005. All told, the economy produced $13.38 Trillion dollars worth of goods and services last year. That is a new record, and surpasses the pre-recession peak reached in Q4 of 2007. Perhaps David Kostin, market strategist at Goldman Sachs will be right about recently increasing his EPS for the S&P by $2.00 to $96.00 per share. He's also forecasting $106 for 2012.
That is incredible ... fantastic news. Now, let me see ... 2.9% of 13.38T is around 388B. Just remind me again of the QE and backdoor funding in 2010. Also, while we are talking, what was the increase in the deficit last year. We might as well be adult about these figures and get ALL the numbers up on the table at the SAME time and then we can work at exactly what happened.
ok, so now that the economy is booming according to their numbers, time to jack up interest rates a bunch to get ahead of the inflationary pressures...
Tax rates are dropping. The payroll tax dropped 2% from 6.2 to 4.2 Businesses can now obtain 100% Write-Off for investment this year. Obama wants to lower the Corporate Tax rate. 2011 will see even stronger GDP growth, and the deficit will begin to contract due to the higher growth. Earnings for the S&P could actually set a record. There will be some margin pressures due to increased input costs (from all of the weather related supply shocks to commodities), but that might just get passed on to the consumer. As Jan Hatzius has mentioned ( when he did a 180 back in early December ), the pace of de-leveraging has slowed, and credit quality has improved. Anyone who dismisses this key trend is simply driving their car by looking into the rear view mirror. I see 3.5% GDP growth for all of 2011.
We are not there yet. Besides, Bernanke has been exporting inflation over to China. This will force them to finally re-value their currency, and it will slow their economy, thus reigning in demand for commodities.
You wish. You hope. In reality we do not know what the outcome will be. History records that the reaction to such moves is usually contrary to the original plan. You know the old saying. "Cheers up things could be worse" and sure enough, things did get worse.
BOOMING I think not!!!!!!!!!!!!!! GDP figures are nothing but an ILLUSION!!!! These GDP figures we are seeing are nothing but an illusion, only fools believe these numbers. Take away the trillions pushed through the economy and they would be lucky to see anything above 0%, its all manipulation. This growth isn't coming naturally, its coming through worthless stimulus. Why do you think they are going for QE2 and eventually QE3 and QE4, its because they know this economy is pretty much worthless without it. Where are the free markets, you cannot find a real economy and real growth by stimulating it with worthless monopoly dollars. The economy has become addicted to these new policies that BUBBLE ben bernanke has set forth. Keeping these policies in place will create more problems moving forward. Again the only way they know how to stimulate this economy is through asset bubbles and I can tell you right now were in the making of another crisis going forward.
OP must be joking 400 bln increase with trillions in stimulus that's says we're in depression and it's getting worse
Huh??? This is classic. It means inventories were drawn down at the same time as final sales increased. That's exactly what you need to get a self-sustaining move up. Inventory restocking will expand production in the coming quarters, at the same time as demand continues to incrementally increase. Note that ex the move down in inventories, the pace was as fast as anything seen since 1984.