COnsumer spending is going to get worse with all those credit card companies either reducing credit card lines of credit or even closing them down and add rising unemployment.. I just don't see how from a consumers point of view things are going to get better. So far the government has helped the financial institutions but has not helped the consumers.

There are plenty of retails shopping centers with vacant shops that have for rent or lease signs on them, restaurants and shops are pretty much empty during busy lunch hours and dinner time. The only retail shop I see that is busy in shopping malls is Apple lol...

(sarcasm on) Ma'am, if you want some good news about economy, please read Mr. Lazzaro articles that he post on this website. (sarcasm off)

You forgot to mention that the only reason why the number was -1% is due to the trade gap. Imports fell by such a large ammount that compared to exports it actually added around 2% to GDP.

The real GDP number measured by M2 or M3 is far worse that Q1.

Just take a look at that inventory number -$141 billion. Oh yeah the reccesion is over, we're going to have big spending ahead.

Car dealerships still have 2008s on the lots. The 2010s are coming in and they haven't even sold half of the 2009s. That is the real reason why "Cash for Suckers" was passed. Ford, GM, and Chrysler needed to sell whole lots full of 2009 trucks. They were all under union contracts to build X number of 2010s even though they weren't needed.

THAT IS WHY "CASH FOR SUCKERS" HEAVILY FAVORS TRUCKS OVER FUEL EFFICIENT VEHICLES.

I don't know why other people haven't figured that out.

I doubt that there is anyone gullible enough to believe that Gross Domestic Product fell by only 1% in the past 3 months.
New home sales are down 30% from last year. Auto sales are down 30% from last year. Unemployment is up to 9.5% from 5.9% last year. The total number of people on unemployment is up to 6.5 million from 3 million last year. The number of passengers on commercial airlines is down 15%. Sales tax revenue in California is down by 30% as is income tax collections on wages earned since last year.
Anyone dumb enough to believe GDP is only down 1% from the same months last year are probably the same gullible brain dead people who actually believed Richard Nixon when he said "I am not a crook" and who believed Bill Clinton when he said " I did not have sex with Monica".

As I have said in the past - statistics can be deceptive
GDP aside, let's take a look at what is really out here. Wall St. has maintained a steady rise based mostly on "profit" presentations from the business community. Some of the for casts reflect weakness for many quarters, while others seem much more bullish. All in all, the news is not good, but it is not really bad either. After all, they are all getting there through "cost cutting measures" which as a general rule, means further layoffs. Now for the interesting point. Retired people are on a fixed income. People on public assistance are on fixed income. People on the unemployment role are on fixed income. There is nothing wrong with any of this unless we are confronted with a period of inflationary tendencies. No need to get alarmed as the Fed does not foresee anything to worry about. Folks, there is one problem with the governments idea of inflation and that is simply "core" and "other". Core is oil, food and your utility bills and they don't count. Buying ipods, tv's and fixing your car does. Maybe I am an old jackass, but I do think that somebody has something screwed up. (It's probably deliberate as us morons don't know the difference anyway)
Anybody been to the grocery store lately? There is currently a long and large drought in Texas and real screwy temps in the Northwest. All of this equates to one thing - nothing is going down. The oil markets are flighty, but right now there going up. The Prez wants the power companies, especially the ones burning coal, to clean up their act and has mandated this to happen. It's a good idea, but the timing stinks as it is going to happen on the backs of the consumer. We get to pay for it. Wait until you get your 2010 bills. It's all real interesting as I want to know how you get the mass of people that are now on fixed income, with more coming, to get back to supporting an economy at a 70% level?
The question of the blog was is there are fix?

Yes - The voting booth. When, if ever, the U.S. public gets smart enough to rid themselves of the likes of Franks, Dodd, Waxman and the host of others that are making the mass of the country live hard - than we might get somewhere. This is not about Republicans nor Democrats, this is about sorting out those that still look to have integrity or honesty. Keeping people in office that do no do their job or have questionable ties to financial or business interests - are not in yours, nor mine, interests.

Pay attention to the action - November is coming.
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A 1% drop in GDP averages out to be about $1500 less spending per U.S. household annually or about $30/week.

AIG gets $182 billion. Ordinary Americans get 40-year mortgages. Still lovin' Obama?