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GDP down 1% in 2nd Quarter

Discussion in 'Economy' started by ethics, May 29, 2014.

  1. ethics

    ethics Pomp-Dumpster Staff Member

    When this awesome Pres of us was elected, we were lead to believe that this man will fix the economy.

    1st term excuse: Bush
    2nd term excuse: GOP blocking policies?

    Sorry but Cash for Clunkers is still kicking our asses, the regulations on banks was a nice play in the media but do absolutely nothing except make them go extinct (or overseas). Inflation is on the rise, unemployment hasn't been THAT great -- especially with all the people giving up looking for work...

    What did I miss?
     
  2. Allene

    Allene Registered User

    I'd say you were spot-on, Leon. All you need to do to see the inflation is go shopping for something you haven't bought for a couple of months. We have a huge elephant-in-the-living-room problem. A lot of folks are either not very bright or in denial or both.

    I have some savings in the credit union. Am I living dangerously?
     
  3. ethics

    ethics Pomp-Dumpster Staff Member

    Not more than others.

    More on GDP anemic number:

    But while the initial weakness was due to bad weather, the revision was almost entirely falling inventories.

    The bad weather has not continued into the second quarter, and inventories can only fall so far, so most economists expect growth to rally towards a pace closer to 3 per cent for the rest of the year. Whereas inventory adjustments knocked 0.6 percentage points off growth in the initial release, that was revised up to 1.6 percentage points, accounting for almost all of the downward revision. Small downward revisions to net trade and government spending accounted for the rest.
    Source

    Let's see the spin in 3 months. Remember, we are expecting a whopping 3% increase the next 2 quarters.
     
    tke711 likes this.

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