In a world that has been turned on its head, where bad news is good news as it means more monetary support from the Fed, substantial weakness in the U.S. economy was met by optimism on Wall Street. While the U.S. economy was supposed to be the bright star, outperforming its ailing peers, the third and final revision to first quarter GDP showed a meager 1.8% expansion in output, down dramatically from 2.4% previously. Investors rejoiced as the data suggests it will be highly unlikely for FOMC’s full-year GDP projection to be met, meaning QE tapering could be delayed further.
1.8% is pathetic
It is undeniably sub-par. Look for economic growth to shrug off tax increases and the sequester in the coming quarters. The Fed isn't talking taper for the fun of it.
Fed is between a rock and a hard spot. QE3 has not given the economy the bump they hoped. My sense is that they can't grow the balance sheet indefinitely so they have to start tapering.
1.8% is pathetic
1.8% is pathetic
Well, credit easing cannot create jobs when banks continue to hold off on lending:
There are more creative ways to stimulate lending. They can begin purchasing prime commercial loans. When the fiscal side does not want to react, the Fed must.
Lack of integrity :“,outperforming its ailing peers,”
We are out performing our ailing peers. While our ailing peers struggle to stay out of recession (triple dip recession in some cases) because of their failed austerity policies, President Obama has reduced the deficit every year as a % of GDP, cut Bush’s deficit in half and done so while maintaining positive GDP.
My sense is that you confuse lending that makes sense in this economic/regulatory environment with lack of lending. You also confuse lending to people who can actually afford to pay their loans to loaning to anyone. Car sales are up to nearly 15 million, you think those are all cash sales? Home sales and prices are up.
Any growth is good, this just isnt good enough to keep up with population growth and recovery from the recession. There are plenty of things congress could be doing to encourage growth, but instead its wasting time on amnesty, guns, etc. anything but fiscal discipline and regulatory reform.
Simple question, why did you get upset when previous quarters were adjusted to higher rates (calling it a farce) but accept the lower rate as God's truth?
Furthermore, I take it you are upset at Congress? After all, Congress writes laws and spends money. The Executive Branch does neither.
Also, do you believe stopping QE will increase economic activity, is so how?
Older graph but pay close attention to the projection with and without the Stimulus
Without a doubt, they underestimated the severity of the crisis.
So not only were they incompetent.
but the policies they put into place to try and alleviate the situation only made things worse. (Trillions more in debt)
You will be hard pressed to make a valid case that things are worse than what they were in the dark days of 2008 and 2009.
Nobody new that household wealth losses would approach 100% of GDP.
You will be hard pressed to make a valid case that things are worse than what they were in the dark days of 2008 and 2009.
Nobody new that household wealth losses would approach 100% of GDP.
You will be hard pressed to make a valid case that things are worse than what they were in the dark days of 2008 and 2009.
Without a doubt, they underestimated the severity of the crisis.
but the policies they put into place to try and alleviate the situation only made things worse. (Trillions more in debt)
Actually, IMO, things are fundamentally FAR worse now...and as soon as the Fed runs out of QE's OR they stop propping up the economy...everyone will see just how much worse.
So the answer was Obamacare and skyrocketing food stamp rolls? Come on man stop playing games.
Trillions more in debt is worse. It's an easy case to make.
Unless you take into account the false bottom we are standing on.
Opinions vary.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?