Savings Experiment: Snow Removal
The Money Man Behind Rick Santorum: Who Is Foster S. Friess?
The recession "officially" ended in the third quarter with 3.5% GDP growth. Time to start celebrating, right? Not so fast.
Analyst and editor of Shadow Government Statistics, John Williams, wrote: "The estimate of 3.5% annualized real growth for third-quarter GDP included a 1.7% gain from auto sales, a 0.6% gain from new residential construction, and a 0.9% gain from a largely involuntary inventory buildup, which appears to be understated. ... In aggregate, those one-time stimulus or inventory items represented 92% of the reported quarterly growth."
What's more, in November, the 3.5% Q3 GDP growth was revised down to 2.8%. If you consider Williams analysis in light of the sharply lower GDP number, I'd say we're looking at real GDP growth of zero -- or worse.
Lesson for investors in 2010: You can trade headlines, but I expect we will see a double-dip recession in the real world no later than the second quarter of next year.
Next: Lie #4: Unemployment Will Bottom Around 10%
Goldman Earnings Sink After Buffett Dividend
Johnson & Johnson's Income Falls 23%
Burberry Shares Leap on Sales Update
Reader Comments (Page 1 of 1)
12-26-2009 @ 4:25PM
setec5354 said...
I said it before and will repeat it....
Corruption and greed and the filth is 100% alive and well and will remain forever proving recovery is equal and same as Japan's never recovered recession.
There will be more job lose in 2010 and not one recovery to be seen.
Gold will be $2000. or more with retraction to profit taking!
100% worth watching.
12-26-2009 @ 5:21PM
Clay Gunter said...
Why is this article such a lie? I've never heard of anything officially ending and the treasury dept. has never said that its over along with 1 in 4 Americans out of work! This article stinks of Bushnazi misinformation! "Recession loses its grip?" That means its easing up , NOT ENDING! Get your info. right Shulman, before you start propaganda mongering!
12-27-2009 @ 8:54AM
Tom said...
Our founding fathers are rolling in their graves
12-28-2009 @ 9:45AM
Financial Cents said...
Yes, the recession has ended, but the depression has just started...
Despite all the media coverage pumping up the economy, the fundamentals have not improved. In fact, it has become worse! But because 401k accounts have recovered somewhat in the last 9 months, the perception is that the recession is over. Or is it? The stock market has recovered by more than 50% since the March 2009 lows but that doesn't mean we are out of the woods. Quite the contrary. Chances are that the next leg down will be dramatic and painful as the stock market resumes its long-term downtrend. I expect to see new lows.
Continue you reading...
http://financial-cents.blogspot.com/2009/12/401k-outlook-how-to-invest-in-2010.html