JUST IN: GDP Growth at 1.3%

Just in from Reuters, the GDP for the US reached a meagre 1.3% in the last quarter. This is .3 point below market expectations. Hold on tight friends, you’re in for a very bumpy ride!

More here.

The initial reaction on stock markets (source cash.ch)

FTSE (London) -1.39%
DAX (Frankfurt) -1.36%
SMI (Zurich)  -2.29%
CAC40 (Paris) -2.02 %

 

26 thoughts on “JUST IN: GDP Growth at 1.3%

  1. Dana Milbank, writing in the WaPost:
    “In bringing the “Boehner Plan” to the floor, the speaker abandoned the reforms he promised when he took over the House. In the minority, he complained that Democrats rushed bills without sufficient notice and wasted time on trivial items. “With all the challenges facing our nation, it is absurd that Congress spends so much time on naming post offices,” he complained in September 2010.
    But Republicans rushed this bill to the floor without the promised notice, and, after hours of debate, the presiding officer announced just before the scheduled vote that the House would instead take up: post-office namings.”

    Fail

        • Mom, I still can’t believe they will, his is not going to be just a glitch. This is a huge fail, the relative silence of the righties in comments threads, is earsplitting right now. Some are reiterating the tea party mantra, but somehow it doesn’t feel as if they are so convinced anymore. But, I can be wrong. I am not right in the middle of it as you are.

  2. I don’t think a 1.3% growth is affecting the markets. That’s past history. They are selling now because the next few weeks are the scary ones.

    The President needs to exercise the 14th amendment, only extending the debt ceiling enough to cover the rest of the fiscal year, spending that was already otherwise authorized by Congress. It would provide a stopgap extension, and weaken the case anyone might make against him as a ‘unitary executive’. It is hypocritical of Congress to pass a budget that exceeds the debt ceiling without authorizing the raising of the ceiling to that level. They would have a hard time impeaching him over that amount alone.

    • Congress basically wrote the check in April when the rest of the fiscal year was agreed upon. Now the House Republicans are refusing to put the money in the bank to cover the check already being presented at the bank. That gets you thrown in jail here where I live.

    • HoR, the charts all point downwards significantly the minute the news broke. I expect the markets got a whiff of reality and then acted as you said.

      • EV, the percentage drops above represent the equivalent of a 150 to 200 point drop in the Dow Jones Industrials. That’s not that big a drop yet. There is a certain percentage of speculative investors that try to be at the cutting edge of every trend, up or down. Then there is the next group that follows the first group. Any news at all positive or negative moves the exchanges up or down as a result of the actions of these two groups. They make their money being ahead of the crowd. So, yes, a report like this affects the markets, in a sense that it moves the speculators. Absent other factors, like the debt negotiations in the US, the markets would stablize in a day or so. So that is why I said a .3% drop in expectations shouldn’t affect the markets much.

    • It’s time to at least go to a Stop Loss strategy. If you have like 30 years left until you need the 401K money, I’d leave it. I’m thinking along the same lines, we have the bulk of our pensions in a similar program in Switzerland. And for me there are only 15 more years left to recover the loss.

    • I’m not. I’m pretty well diversified and the 2008 meltdown convinced me that the folk who are supposed to know what will happen in the market and economy have no freaking clue. Since I don’t either, I’ll let it ride. (Mind you, I have a reasonably conservative portfolio)

      • Letting mine ride. Expecting a 20 – 25 % devaluation, and trying to outguess the market would make sure I’m in the supermarket line that winds up having the longest time to checkout.

  3. DOW futures down 115 points according to Reuters. If it weren’t such a tragedy for have-little and have-nots, I’d say bring out the popcorn.

  4. But, the Job Creators were given an unwarranted 2-year extension on their tax cuts! The Job Creators have the lowest capital gains tax rate in decades! The interest rates remain historically low for the Job Creators to expand all those Job Creating businesses!

    And the GOP has had control of the House for two quarters, both of which have underperformed expectations.

    Must be Obama’s fault…

  5. What I don’t get is the power and influence the rating agencies have. I mean they were the ones who colluded with the banksters and crooksters on Wall Street when they knowingly gave AAA ratings to toxic shit. They should all be in prison.

    • Oh, that much is certain, but if PencilNeck Can’tor thinks he’s going to shine in that role, he’s in for a big surprise! He is far less liked by the Dems (from what I’ve seen) and he’s been so blatantly disrespectful of the President, that he’ll get no help AT ALL from the Dems if he takes over as Speaker. And the non-bagger ‘pubs have seen his backstabbing and power-grabbing while they watch their party swirl the bowl thanks to the Baggerati.

      Boehner, for all his flaws, has been a fixture in the House and I suspect he has some begrudging respect from his Democratic colleagues. Can’tor does not and will not, and he’ll look even more the fool for it.

      • Agreed, Cantor can’t dance with any amount of grace, so he can’t be a traditional deal-making speaker. As for the Baggerati (I like that term almost as much as your “Princess Snowpants”), they’ll have a hard time reconciling their “just regular folks with common sense” meme with the fact that Eric is wealthy, jewish, and has spent the last 8 years avoiding his constituents. I don’t think Eric likes anyone but Eric.

        • I don’t know if you’ll come back around and see this, Outstanding, but you are right on each point you make, and especially that Eric only really cares about what’s good for Eric. And frankly I don’t see anyone around him who sings his praises, and believe it’s even more unlikely now that he’s proven that he’s backstabbed his own Speaker.

          Have a great night and weekend!

  6. Pres. speaking at this time:

    bi-partisan…. bi-partisan…

    We’re in rough agreement.

    We need to reach a compromise by Tuesday.

    Lower than a AAA rating would be literally taxing on all.

    Citizens keep the pressure on Washington tweet, e-mail, call your representative…

    Let’s compromise and get this done.

    • I just sent emails to my two senators and my representative.
      I asked them to do the adult thing and OK the raising of the debt ceiling necessitated by the irresponsible policies of the previous republican administration.
      I also asked them to keep the pressure on to raise revenues fromt he closing of loopholes, increased fairness in the tax code (hedge fund mgrs, etc) and the removal of the cap on SS contributions.

  7. So the House has tacked on the balanced budget amendment; which may not get past the Senate… and it’s certainly nothing that’s going to happen immediately (if ever).

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