by Maura Reynolds
The economy took a sharp downturn in the last three months of last year, but the nosedive was not as steep as many economists, investors and government officials had feared.
The Commerce Dept. reported today that GDP - the value of all goods and services produced in the economy - declined a precipitous 3.8% in the 4th quarter of last year.
That was significantly worse than the 3rd quarter of 2008, when the economy contracted by 0.5%. But it was significantly better than the decline of 5% or more that most economists expected.
Still, it was the economy's worst quarter since 1982, when output posted a 6.4% decline.
Diane Swonk, chief economist at Mesirow Financial in Chicago, warned that the figure was an advance estimate subject to significant revision.
``Unfortunately, this is a head fake,'' Swonk said. ``This is still an economy that is deteriorating rapidly. That has not changed.''
Comments
So, we did not NEED to give the Bankers the 'stimulus' money--MONEY THAT THEY DID NOT USE TO EXTEND CREDIT TO SMALL BUSINESSES. Money they instead SQURRELLED AWAY OFF SHORE or used to give themselves bonuses.
GET THE 350 BILLION BACK. GIVE EACH ADULT 3 GRAND.
Posted by: There's your stimulus, kids | January 30, 2009 10:47 AM
Wow with this economic disaster on his resume, George W Bush might have been right to compare himself to Ronald Reagan. Who knew?!
Posted by: Paul | January 30, 2009 11:25 AM
The most interesting tidbit from the above article: The "economists" were wrong again. And wrong not in forecasting the future, but in knowing what happened the last 3 months.
If "economists" can't even tell you what happened last month, why should any rational person listen to their forecasts of the future?
Posted by: Bruce | January 30, 2009 11:29 AM
Megadittos Bruce. We don't need to listen to those elitist educated economists! What do they know? We only need to listen to a real American Super Patriot, Rush Limbaugh. He's not tainted by any of that education nonsense, He hasn't wasted his time with research. We should just shut down all those worthless pinko universities, The only education a real american needs comes from the true experts, the great Americans like Rush, Hannity and Coulter.
Posted by: Another proudly ignorant Republican | January 30, 2009 12:24 PM
I'm not sure if I believe in the 3.8% number....I'd have to research the heck out of it, but there is a trend and an aggregation effect going on here that paints a much worse picture. Using these GDP numbers, if you take 3&4 Quarter 08 numbers and add them with what 1&2 quarters 09 will be, then it will show a deeper slide than 1982. I guess the difference is in the time scale, with the result now being much worse. To me, it is a sign of multiple economic problems coming together at the same time. This slide has already broken numerous
records" at this point, and will continue to break many more in 2009.
Posted by: Xcellentform | January 31, 2009 9:12 AM
END THE FAKE WAR ON OIL AND YOU FIX THE ECONOMY.
Posted by: IT'S THE MILITARY INDUSTRIAL COMPLEX WARFARE GREED, STUPID | January 31, 2009 11:06 AM