GDP plummets 6.1% in 1Q…

And again we are reminded why we don’t take economists predictions as the end all and be all, unless of course you are trying to ram through gigantic spending bills in which case a rosy scenario of growth in 2010 is accepted at face value….

Markets are ignoring it, as they have been ignoring all the data showing we are nowhere near the end of this..almost as if they are stoned these markets or maybe they are in shock..they say MiM’s old fashioned Sell in May, Go Away is silly, uhm okay how much money did they lose in August of 07 and 08?

It will all be alright by 1Q of 2010 they say….cough cough bullshit cough cough…

We have now SURPASSED the 70s on bad exports and are back to ’69 numbers....

GDP dropped 6.1% in 1st Quarter:

…Analysts polled by Reuters had forecast GDP falling at a 4.9 percent rate in the January-March quarter. Output has declined for three straight quarters for the first time since 1974-1975….

Exports collapsed 30 percent, the biggest decline since 1969, after dropping 23.6 percent in the fourth quarter. The decline in exports knocked off a record 4.06 percentage points from GDP.

Investment by businesses tumbled a record 37.9 percent in the first quarter, while residential investment dived 38 percent, the biggest decline since the second quarter of 1980….

DOW futures are up 61, they must be smokin’ rope….but what about the Shovel Ready projects we spent all that money on?

…The Commerce Department said the government’s $787 billion rescue package of spending and tax cuts, approved in February, had little impact on first-quarter GDP. Part of the stimulus package is designed to bolster state and local and government spending, which fell at a 3.9 percent rate in the first quarter, the largest decline since the second quarter of 1981.

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April 29, 2009. Tags: , , , , , , , , . Economy, Finance, Obama Administration, Politics, Uncategorized.

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