Well the news is plastered with the economy growing 5.7% even Obama and his assorted talking heads were out there today patting themselves on the back, but what does it mean? Well I seem to think Wall Street the evil villain to Obama’s progressive agenda is a good barometer of what it really means.
So the news came out today the GDP increased by 5.7% and Wall St tanked the DOW down 53.13 (-0.52%), the NASDAQ down 31.65 (-1.45%)… seems Wall Street is not that impressed, why? Obama is empress and thanks himself, the liberals are empresses and thanked themselves and mainstream media isn’t blaming Bush and hailing The One as magical. But what does it all mean Basil?
Economy grows at 5.7 pct pace, fastest since 2003
Still, economists expect growth to slow this year as companies finish restocking inventories and as government stimulus efforts fade. Many estimate the nation’s gross domestic product will grow 2.5 percent to 3 percent in the current quarter and about 2.5 percent or less for the full year.
About 60 percent of the fourth quarter’s growth resulted from a sharp slowdown in the reduction of inventories as firms began to rebuild stockpiles depleted by the recession.
That won’t be fast enough to significantly reduce the unemployment rate, now 10 percent. Most analysts expect the rate to keep rising for several months and remain close to 10 percent through the end of the year.
The (GDP) Gross Domestic Product can be consumption, GOVERNMENT SPENDING, exports and inventory or goods that companies have on-hand unsold.
Note that an increase in inventory will increase the GDP but possibly result in a lower future GDP as the excess inventory is depleted. To eliminate this effect, the final sales can be calculated by subtracting the increase in inventory from GDP. The final sales can be either larger or smaller than GDP. The change in inventory is an important signal of the next period’s GDP.
So when the progressive liberals run around touting this false positive, remind them that not all that glitters is gold.
Tweet 
Buzz 
DIGG 
Facebook 
Ping 
Reddit 
Stumble
Related posts:
- Failed logic of the $5000 tax credit for business
- Obama’s White House verses Fox News (and conservatives)
- Federal Debt- so easy a liberal can understand.
- Obama declares war on Fox News… Fox fights back.
- Yeah, Happy Days Unemployment ONLY 9.9%
- Why America is losing jobs?
- BREAKING NEWS!! ACORN a crimal organization?
- What does healthcare cost?
- Stop Breathing – EPA says: carbon dioxide (CO2) a pollutant.
- The utter genius of Pelosi
