News Article: Economy Grew 5.9% in Q4 2009

[Bodhisattva]

And, of course, having more government involvement in the economy being the solution to the problem caused by more government control in the economy ......

[ame="http://www.youtube.com/watch?v=qdFLPn30dvQ"]YouTube- Kevin Bacon - Fraternity Paddle[/ame]

 

[RhodeIslandRed]

I understand much of the reported growth in GDP was from rebuilding depleted inventories. The real indicator will be how quickly consumers return to the market to purchase these goods.

I would like to submit the question what the GDP would look like with the financial and military sectors were removed comparing the quarter of 2009 and 2010. This would answer the question if rebuliding depleted inventories is the cause of the 5.9% increase.

Here is an interesting article of the significant decrease in commerical lending. Apparently the financial sector can make up for it by lending to the gov't.

This significant shift in bank assets has implications for the economy and the US dollar.

Instead of depositor money being used to stimulate economic activity in the private sector by lending to businesses and consumers, the banks are helping to fund the growing federal deficits. This re-allocation of resources has a negative long-term impact on the economy. Depositor money is not being used for productive purposes like building manufacturing plants and making other investments that will create jobs and grow the economy. It is being spent by the government, which consumes in the present and does not invest for the future.

What Are Banks Doing with Their Depositors' Money?

So capital is not available to the private sector, how can they rebuild inventories?

 

[ValuJet]

 

[MegaVars]

I was going to make a strong argument against all the growth they are claiming but I just remembered that I need to certify for unemployment this week.

Bingo.

 

[Crimson Speed]

Consumers must first find a job. I have seen zero improvement in that area. We are still moving backwards.

The Western world's available capital is currently being consumed by its governments at an unprecedented pace. This is capital that would ordinarily be put to use by private enterprise.

Expect continued job losses in the private sector, for a good long while.

I agree. Of course, we could just get a government job as Obama continues to grow the number of Federal employees. For what it is worth, 52% of the workers in Greese work for the government and we see where that got them. They are in deep financial trouble, not capable of repaying their massive debt. It is what happens when you have a massive number of government employees that contribute nothing to the GNP and the growth of the nation. Greese's government employees are unionized and are threatening to strike in response to the country's plan to cut their wages. This is just the beginning; the entire Eurozone is gasping to tread water. There are other European nations in similar shape. It is about to get real nasty over there.

I have to ask why our leaders want to duplicate what Europe has done. It is not working for them, so why do we want to walk into that trap?

 

[formersoldier71]

Here's one way to have good news.... Don't let bad things happen.

The Obama administration may expand efforts to ease the housing crisis by banning all foreclosures on home loans unless they have been screened and rejected by the government’s Home Affordable Modification Program.

Obama May Prohibit Home-Loan Foreclosures Without HAMP Review - Bloomberg.com

 

[Bama Reb]

Here's one way to have good news.... Don't let bad things happen.

Obama May Prohibit Home-Loan Foreclosures Without HAMP Review - Bloomberg.com

So that later he can claim a reduction in foreclosures under his administration. More smoke and mirrors.

 

[Bodhisattva]

So, going forward, who will lend money if collateral is eliminated? "Hey, loan me money to buy a house. But, if I can't pay you back, you can't get the house. Any takers?"

 

[Tidewater]

So, going forward, who will lend money if collateral is eliminated? "Hey, loan me money to buy a house. But, if I can't pay you back, you can't get the house. Any takers?"

More candy.

It seems that part of the causes of the present mess was loaning (at government insistence) to people who could not pay back the loans.

 

[Crimson Speed]

So, going forward, who will lend money if collateral is eliminated? "Hey, loan me money to buy a house. But, if I can't pay you back, you can't get the house. Any takers?"

It must be the reason our government is still in the mortgage guarantee business. Lets see, in the mortgage business, the car business, and in the insurance business. They are desperate to be the rulers of medical insurance and our health care. If they would just take over farming and freight, we could look to them for everything and eliminate the private sector.

This past week, Obama stated that he fully supported free markets. Really!! Show me.

 

[MasterShake]

Well after 4 months of unemployment, I've finally found work. I started working against last week for a fortune 500 company and couldn't be happier.

 

[Tidewater]

Well after 4 months of unemployment, I've finally found work. I started working against last week for a fortune 500 company and couldn't be happier.

Congrats. Good for you.

 

[HomeBrew Tider]

I'm surprised that nobody has mentioned the "great" retail sales report put out in February.

Mish's Global Economic Trend Analysis: Retail Sales Rise: Where? Let's Take a Look

Retail sales are not what they seem

I have written about this before but not enough. The published numbers are based on "same store sales". Think about all the companies that have gone bankrupt. Take Circuit City for an example. Gone. The doors are closed. Some of those shoppers went to Best Buy where same store sales rose.

Also remember that Best Buy and many other chains closed weak stores. The result: same store sales went up again.

Government methodology for reporting retail sales is based on sampling stores in existence. It does not factor in stores not in existence but recently were. Nor does it handle closed stores when the chain is still doing business.

Government reporting of retail sales is fatally flawed.

It helps to understand the methodology before posting on economic statistics. That applies even more so to GDP results.

 

[DzynKingRTR]

Well after 4 months of unemployment, I've finally found work. I started working against last week for a fortune 500 company and couldn't be happier.

Glad to here someone is doing better. I am now going into my 3rd month and things do not look any better. Fortunately my profession (architecture) can change in an instant.

 

[Bodhisattva]

Well after 4 months of unemployment, I've finally found work. I started working against last week for a fortune 500 company and couldn't be happier.

Congratulations, MasterShake. What type of work will you be doing?

 

[HomeBrew Tider]

So capital is not available to the private sector, how can they rebuild inventories?

I just read the article you linked by James Turk. It was highlighted and broken down at length by a financial analyst I follow closely. Virtually nobody is following this story, or is cognizant of its implications.

You, sir, are well informed