Bending the Third Rail
Because We Should, We Can, We Do
Friday, January 27, 2006
GDP Tanks
Fourth quarter Gross Domestic Product came in at a paltry 1.1%, seriously below expectations:
This is a terrible report. Consumer spending slowed dramatically, to its lowest rate of growth in recent history. Business spending slowed even more dramatically, from a growth rate in the neighborhood of 8-10% over the past 10 quarters to just 3% this quarter - the lowest rate of business spending growth since 2003:Q1.
Home equity as an ATM has stopped. No one but the rich have any disposable income, and unfortunately there aren't enough of "them" to sustain anything but the Republican party. Business owners see the writing on the wall and are pulling back. Further weakening of jobs is next.

Heckuva job Bushie!

Experts expect a rebound in this quarter. I hope they're right!
Written at 10:03 AM by Greyhair.
2 comments
2 Comments:
Blogger mikevotes said...
Yeah, the Bushies always tout the home ownership rate as a success, buit it's alittle more complicated than that. The ridiculously low interest rates led alot of people out on a limb to buy a home they coul;dn't afford. A little economic hiccup, and those houses may come flowing back onto the market creating a big problem.

Mike
1:50 PM  
Blogger Lynne said...
North Carolinians are finding that true.
2:58 PM  
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