GDP Slumps Toward Zero As Key Recent Momentum Ends

[marmar]

from 24/7WallStreet:



GDP Slumps Toward Zero As Key Recent Momentum Ends
Posted: July 25, 2011 at 6:42 am


The consensus estimate for Q2 GDP is 1.6%, and there are a number of reasons to think that number will go to zero in the current quarter. The Q2 data will be released on July 29.

If July is any indication, there are growing problems with the trade deficit, consumer spending, and business investments. The other critical factor in GDP measurement — government spending — may also hit a multi-year low in the period. There is nothing left of the Obama stimulus package effect, and austerity measures have already done damage at the state and local level.

Consumer confidence has slipped to recession levels, if recent Conference Board and the Reuters-University of Michigan Survey of Consumers are correct. The concerns these surveys show are indicative of worries about jobs, home prices, and the high cost of gasoline. Crude has moved back to $100 and the employment data for June was awful. Recently announced layoffs in both the public and private sectors will make July jobs data just as bad, if not worse.

The U.S. trade balance reached an all-time high last month since October 2008. Exports were strong but the deficit totaled $50.2 billion, largely because of high energy prices. That problem may show a modest improvement in the next month or two, until the impact of crude’s rise returns. .............(more)

The complete piece is at: http://247wallst.com/2011/07/25/gdp-slumps-toward-zero-as-key-recent-momentum-ends/

[lunatica]

1. I feel like we're dying of a thousand cuts

Sometimes I wish it would just hurry up and crash already. Uncertainty about our future, or how long we'll have the ability to keep our jobs, paying the mortgage AND buying food at the same time is a soul killer.

[MannyGoldstein]

2. But look on the dark side

The upcoming government spending cuts in response to the fully-fake crisis will force GDP down further (and increase unemployment).

[OHdem10]

3. Do not forget, the STATES in their fervor have made DRASTIC

CUTS in their BUDGETS which created LARGE LAYOFFS (FIRINGS).
Increased Unemployment and meant fewer people with discretionary
income to spend. Now we see the results of belt-tightening
in an already fragile recovery. Stall. Stall Stall.

That Trade Deficit means Unemployment for a long long time.
Our mismanaged Trade Policy is responsible for the Unemployed
right now. Watch our Leaders--they will ask for a bigger
shovel to dig our hole deeper by saying we must pass these
3 pending Trade Agreements. UNTIL there is structural reform
of Trade among all Countries and a level playing field is
created, we move further toward Depression than Recovery.
However, they will ask for bigger shovel.

[lib2DaBone]

4. So what do the Republicans do about the economy?

29 Million American unemployed.

50 million Americans who can not afford to see a doctor.

15 Million Americans who owe more on their home than it is worth.

And what do Republicans do? Find a way to cheat old people out of their Social Security.

[toddwv]

5. Good thing that we extended those tax cuts,

refused to implement another stimulus package and started laying off public workers in droves.

Back to the Republicans' dream of an economy. Mo' money for the rich, less of everything for everybody else.

[Gregorian]

6. Prepare for the new mantra- "It's all Obama's fault."

I'm losing friends over this. I simply won't listen to their uninformed blathering. They did it with Clinton, and this will end our relationship.

[texshelters]

7. So far, the GOP have succeeding in tanking the economy

so they can use it as an excuse to cut social programs and a talking point for the 2012 elections.

Let's work so we and the Dems can stop the trend.

Peace,
Tex Shelters