U.S 3QR GDP Grew at 7.2% Rate!

[Frederic Bastiat]

http://quote.bloomberg.com/apps/news?pid=10000006&sid=acHrr.wM83CU&refer=home

Oct. 30 (Bloomberg) -- The U.S. economy expanded at a 7.2 percent annual rate from July through September, the fastest in almost two decades, powered by surges in consumer spending and corporate equipment purchases, a government report showed.

The increase in gross domestic product, the value of all goods and services produced, was the largest since the first quarter 1984 and more than double the 3.3 percent rise in the prior three months, the Commerce Department said in Washington.

Americans spent at the fastest pace in six years, using the windfall from lower income taxes and a record wave of refinancing to buy discounted automobiles and other merchandise. Such demand has spurred earnings at companies like Rohm & Haas Co., giving them the wherewithal to invest in equipment and hire, making for a sounder economic expansion.


More follows...

[absolutezero]

1. so the wealthy bought more crap than usual

there are still 3 million people without jobs.
As "fair and Balanced" journalists Faux news will mention that while crooning over whistleass's incredible economic strategy.
</sarcasm>

[mhr]

8. Correction, There Are 9 Million Plus People Without Jobs

3 Million have lost their jobs since Bush was appointed.

[MaineDem]

2. This says nothing about the future

THis number was expected due to the one-time tax "rebates" and record government spending. But it says nothing about what will happen in Q4. The Admin will play this number up for all they can but I still don't see a turnaround in the economy.

The Initial Jobless Claims number was above what was expected but you probably won't hear much about that.

[rooboy]

3. I'm no economist...

but could the slide in the US dollar have anything to do with this? I know that I've been hurrying and purchasing lots of US goods whilst the exchange rate is in my favor.

[Military Brat]

4. Surges in corporate equipment purchases ...

Which corporations? Halliburton? Bechtel? Military/Iraq-related? How much is corporate vs. consumer spending?

It's almost Halloween. Time to put a mask on something and pretend it's something it isn't.

[gasperc]

5. oops, Greenspan left interest rates, how odd?

You'd think he'd know that GDP was coming in at 7.2% or at least greater than 5 or 6%. So much for deficit control and inflation. What a fucking tool!!!!! In 1993, Greenspan practically put a gun to Clinton's head to deal with the deficit or he'll spike interest rates. Now with the deficit TWICE as large as it was in '93 both in dollars and %of GDP, what does the fucker do? Leave interest rates where they are. Hmmm, Karma's a bitch. Maybe he thought Clinton's aggressive deficit policy would sink him, wrong. Led to a booming economy. Now we'll get boom crash all in one election cycle. Greenspan should have been more careful about what he wished for. He knew where GDP was coming in at and yet left rates alone, hmmm. Me thinks this will work out like Iraq. The neo-cons thought it'd be a cake walk, the opposite happened. Leave interest rates alone, stay mum on the deficit, let people think the economy's booming it'll all self correct right? Karma's a fucking bitch. I'm sticking with Billmon's predictions.

[AWD]

6. When you're down this far....

....there's only one way TO go. Up.

It would have been impossible for a Clinton economy to grow atthis rate...because it was already doing great.

If a baseball team averages 3 runs per game one season and 5 runs per game the next season, it's a growth rate of 66.7%. If another team averages 6 runs per game one season and stays steady at 6 runs per game the next year, it's a 0 percent growth rate.

But guess which team is still better????

[Media_Lies_Daily]

7. At the current rate we should break even in about 50 years.

[ixion]

9. something is fishy here

if the economy really were expanding, companies wouldn't be laying off workers left and right, and the job market would have improved. I smell fuzzy math, and it stinks.

[coralrf]

10. Yup...

read the thing. It is not news its propaganda. Where is this report in the major news? This is Bloomboys news. What do you expect? Note the reference to "tax cuts", which the author can have no proof of or as we know: Bush would be spewing this.

Its Bullshit and that is why it is here.

[freepotter]

11. I'm certainly no economist...

but it feels like to me that inflation is making up a good deal of the "growth" in the economy. All of my health and other insurance premiums have gone up about 30% in the last 3 months. Gas and gasoline prices here have also shown about the same increase, not to even mention prescription medicines. I think the governments reports of an annual inflation rate of 2.3% are just pure crap, and should be more in the range of about 10%. I don't believe a word from this misadministration! :grr:

free potter

When the government fears the people, you have liberty. When the people fear the government, you have tyranny. ~Thomas Jefferson

Let them call me a rebel and I welcome it, I feel no concern from it;
but I should suffer the misery of demons were I to make a whore of my soul."
--Thomas Paine

[TAH6988]

12. And computer prices are way down

my 2004 model car was cheaper than the 2003 model. My point? You can't take three examples (like you cited) and claim inflation is up around 10%. It isn't.

[lindashaw]

13. It is said that the expected job growth will be most in information

technology. We shouldn't see much job creation here in this country, however.

Most all the tech jobs are in India now, and will continue to be. The health costs here are prohibiting real job increases, and until they get a handle on that, I don't see much improvement.

The job growth that we saw this quarter was mostly temp jobs anyway, and they that don't require benefits.

GOP will spin this for all it's worth, of course, and corporations are going to continue to profit. It just won't translate into job recovery in this country.

[MGKrebs]

14. There will be a "corrected" revision

downward next month on page C14 of your favorite bird cage liner.

[beyurslf]

15. I guess I am not an economist

but isn't scorching growth like that fodder for hyper inflation? The article says the last time we had growth at that level was the early 80's.... and wasn't inflation rampant in the late 70's/early 80's?

[smirkymonkey]

16. Strange, In the world I live in

the economy sucks...

[On the Road]

17. How Much of This is Iraq?

There are tens of billions of dollars being spent in Iraq. A lot of it by suppliers to the military -- not just arms dealers, but producers of everday items. I would like to see a breakdown.

[TahitiNut]

18. duplicate (and title)

See http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=191199

Also, somewhat trivially, the title should be "U.S. Third-Quarter Gross Domestic Product Grew at a 7.2% Rate".

While this was posted first, I'm locking this thread. (The other thread has more than twice the replies.) Interested DUers are welcome to continue discussing this in the referenced thread.

Thank you for your understanding and cooperation,
TahitiNut - DU moderator