Economy growing: 5.7 pct fourth quarter

Who wants to bet this number will be revised downward a few times like the 3rd quarter was?
There was an uptick in consumer spending, but memory tells me consumer spending in December only grew at a 0.3 percent pace, which is nothing considering it was the Christmas buying season.
It is tough for the economy to grow when businesses are not hhiring, people are out of work, most folks are not spending, restaurants see business down 15 to 20 percent, and small businesses are continuing to cut back.
I suppose any increase is better than no increase at all. But these numbers, like the original 3rd Q reporting, are highly suspect.

You know what they say about picking your family and friends.

Hopefully this is a sign of better economic times. But job losses and unemployment remain high and nobody seems to want to hire. When you read beyond the headlines it seems that 60% of the growth was fueled by inventory levels which is not good news. Time will tell on this.

Good news for Americans and bad news fo republicans. Go figure! Strongest growth in 6 years while the party of doom, gloom, and fear try to kill a recovering economy. Perception is reality and they are doing their best to kill the growth. Overstating and creating fear is their mantra. If you've read the news today you will see that Blair has admitted that the threat from Saddam was "over stated". Misleading the country into the biggest blunder in years. No wonder they hate the whole "hope" thing as fear is their tool.

Hey Obama Haters: Any Comments? Actually I mean constructive comments if you can muster any.

Econ 101

Inventory reductions are a DRAG on the economy. GNP is a measurement of production. Not producing enough inventory to replace what was sold reduces GDP.

Something is seriously bogus with this story, and this is yet another made up number that will have to be “corrected” later on.

Isn't the 'smart power' awesome?

WHEN IT TURNS INTO JOBS, WE CAN FEEL BETTER (AND IF THE NUMBER ACTUALLY STICKS AND DOESN'T GET REVISED DOWN). REGARDLESS, THIS IS GOOD NEWS!!!

And Trickle Terry is noticeably absent on this good news.

One point neglected in this story is the total of a double digit increase of the gdp in the last year. This is a huge swing neglected for purpose of political gain.

Great news but I would still like to find a job. Let's see what happens after it is adjusted because we all know it is always adjusted.

No Blood to the Brain,

Unlike you, I was working at 12:00 today.

This is good news, we will see what the next quarter brings.

Like the post points out, most of this growth was driven by inventory reduction, so it might not be sustainable.

Let's compare this recovery to the recovery from the 1981-82 recession. That recession ended in Nov, 1982 with a GDP for 4Q82 of .3% growth and the next quarter (1Q83) had a growth rate of 5.1%. This is very similar to the growth rate of 2.2% and now 5.7%. The trick is the sustainability of the growth. After the 81-82 recession, quarterly GDP growth was over 8%. Strong growth is very common after deep recessions, time will tell what this economy does. I personally do not see 8% growth coming from this economy due to the policies that have been adopted - running up record deficits and debt.

Hey Trickle,

Thanks for recognizing the good news. You're probably right, I haven't heard an economist yet that says this will be sustainable.

Kind of hard turning around the worst economy since the Great Depression, inherited by the failed policies of the Bush Admin.

FYI, I'm writing this between the two jobs I have and running my own business on the side.

No blood to the brain,

This recession was no worse than the 81-82 recession in terms of unemployment (at least not yet), or definitely not as bad in terms of inflation. GEt off the kool-aid drinking line of "worse economy since the depression". Just not true.

Please tell me the Bush policy that caused this recession. Was it the tax cuts?

Answer when you get a break.

"Please tell me the Bush policy that caused this recession. Was it the tax cuts?

Answer when you get a break.

Posted by: Terry | January 29, 2010 9:02 PM

"

Thank you for your time. I'll fill in. I'm sure you and I are familiar with each, already. Two wars that aren't paid for. An expensive Medicare program unpaid for. Housing bubble. And two tax cut unpaid for- totalling 8 trillion. Any more questions? The budget office is open to the public- feel free to use. :-)

HmongRodneyKing the housing bubble started before Bush once you get down to it. There's a little PPS program called Frontline that lays it all out about how it began. There is also a Frontline program that shows how the Clinton Administration dropped the ball on credit swaps. It's all a matter of public record but, I forget you sound like one of the loony liberals and liberals never let a real fact get in the way of their propaganda. And what is the only federal program enacted in the past 30 years that has come in under the estimate? I'll give you a hint it has to do with prescription drugs. And one of the biggest lies Obama told in the state of the union was the $8 trillion lie, and these are in the CBO's "Budget and Economic Outlook" released on January 8, 2009. Obama said he inherited an $8 trillion deficit when the CBO said it was 3.1 trillion over 10 years. Now to get close to numbers that Obama lied about you would have to extend all the tax cuts from Bush and then it goes to $6 trillion over 10 years that is still 2 trillion short of what Obama said. You see Obama and the liberals in Congress are playing a sleight-of-hand trick. He said he get his figures from the CBO but he did not he got it from his own Office of Management and Budget. And the OMB's 10 year projection is $8.9 trillion once you include Obama's stimulus package. And that $3 trillion hole in the budget that Obama spoke about was only $1.4 trillion when he took office. You yourself say the budget office is open and free maybe you should use it. Or do you need a link because I know you liberals hate doing anything for yourself. And here are two other lies Obama laid on us in a state of the union; foreign contributions to campaigns in the US and the whole story about the cost of Obama care once more given by the CBO. To put it frank the CBO says that over the 10 years Medicare and Medicaid cannot grow and certain other conditions must be met for any savings to occur. The CBO also points out to hit the numbers that team Obama and the liberals in Congress keep stating there will most likely reduce access to care and/or a reduction in the quality of care. You said it the budget office is open and free I cannot stress strongly enough that you take a look but, I know you will not. Oh and I almost forgot to other big lies he told; tax cuts by him and excluding lobbyists from policymaking jobs or seats on federal board and committees. Here are just a few of the lobbyists Obama has put on federal board or committee's or has given jobs to; Jocelyn Frye, Cecilia Muñoz, William Lynn, and Ron Kirk. And that so-called tax-cut which was really only a reduction in the federal paycheck withholding, you find out more about that as you fill out your tax form this year. Now if you respond with foolish and childish name-calling and with no facts I will not reply and you can just go on sitting in your mother's basement.

RodneyKing,

HOW did the expensive Medicare program (which I believe started under LBJ) cuase a recession? Are you referring to the Medicare prescription drug plan? For the record, I was agianst it.

How did tax cuts to the American public in 2001 & 2003 cuase a recession in Dec, 2007?

Two wars that weren't paid for? You need to go review your history and see what the deficits were during WW2. It was WW2 that brought us out the FDR recessions of the 30's, not his alphabet soup of programs.

Housing bubble - that is the casue of the recession, not these other non-starters you mentioned. What piece of legislation or executive order did President Bush sign that caused the hosuing bubble?

Don't hurt yourself thinking of the answers.

HmongRodneyKing you say the budget office is open and free well you better head on over and do a little fact checking because a lot of people have an they caught Obama in a lie. His deficit numbers were only one of five big lies from his State of the Union. The CBO released its "Budget and Economic Outlook" on January 8, 2009. With a projected deficit for the year of $1.4 trillion not 3 trillion as the president said. In the CBO's report it has a projected deficit of only $3.1 trillion over 10 years. To get anywhere near $8 trillion debt Obama said would happen you need to make all of Bush's tax cuts permanent but, that's still only gets you to $6 trillion. There is a little-known department ran by the presidents office by the president people that is called The Office of Management and Budget. It was numbers from an OMB report that Obama got his numbers from. Now the CBO projects that if you add in Obama stimulus package over 10 years it goes to $8.9 trillion. Here's another cup of Kool-Aid.

Terry's history lesson--again:
http://politics.theatlantic.com/2009/09/closing_the_book_on_the_bush_legacy.php

Alex,

I'm sure those economic measures did trend negatively during 2001 - 2008, but consider where they started when the economic boom of the 90's (caused by the personal computer and internet revolution) ended. Those indicators rose dramatically during the 90's, so a pull back was not to be unexpected.

Terry,
A "pull back", is that what you call the economy going off a cliff? I guess you also failed to notice that the middle class did not benefit whatsoever from the "expansion", just the 5%ers.

Alex,

The "pull back" was the first seven years, the recession was the last year.

During those horrible seven years, the middle class lived very comfortable. It wasn't the high flying late 90's, but it was still good.

The last year, due to the bursting of the housing bubble (caused politically by the dems), the economy turned into the 81-82 recession all over again - w/o high inflation and interest rates.

I'll bet you the middle class would take 2005 over 2009 or 2010 any day of the week.

Terry
What a sad, sad, political hack you are if you can't even acknowledge that greed and over-leveraging by G.S. and others brought down the global economy. A pathetic, partisan scape-goater, just like the rest of your trickle-creed.

Terry's like the aggressive driver who speeds down the road, ignores stoplights, runs others of the road, and brags that he got to work five minutes earlier then the next guy. Then when his reckless ways catch up to him and he causes a four-car wreck with fatalities he claims "well those other guys should have gotten out of my way". Terry the narcissist strikes again.

Hey Terry,
WTF do you know (or care) about the middle class? When cost go up for the better part of a decade and wages don't, things aren't "comfortable". And when one's pensions are replaced by 401's that then collapse and lose half of one's lives savings, that's hardly consolation to the middle class, schmuck. And then you can't even be honest enough to admit that deregulation of financial markets was a huge factor.

http://online.wsj.com/article_email/SB10001424052748704509704575019032416477138-lMyQjAxMTAwMDIwNTEyNDUyWj.html

Alex,

There is a partial blame in the private sector for this, such as GS and the rating agencies. However, the seeds for their "greed" and incompentance was sown in DC back in the 90's with Fannie and Freddie.

Your second post is just a poor metaphor that misses its point badly.

As for your third point, what do I know about the middle class? I guess I'll throw this back to you, what exactly do you know about me and my background? childhood? career? Do you think I walked into by current job and salary straight from the materinity ward? You are nothing but an envious little twirp.

I don't do envy, maybe pity for the soulless, selfish types like yourself.
Looks like you need another scape-goat, old boy.
http://www.mcclatchydc.com/251/story/53802.html

Alex,

No need for your pity, don't want your pity. Due to hard work - not handouts, I am able to provide for myself and family. I feel sorry for people that have to look for gov't as their solution to every problem. Those would be democrats.