The clueless shill talking heads will attempt to spin this dose of reality into gold. But John Hussman has been proven right again. Facts are facts. Even the government manipulated and massaged GDP figure has gone negative. I’m sure it will surge in the 1st quarter of 2013 with everyone in the country getting hammered with tax increases, wages declining and gas and food prices rising. Maybe Obamacare will save the day.
It’s a full blown recession. BUY STOCKS!!!!!
Shrinkage: US Economy Declined By -0.1% In Q4
Submitted by Tyler Durden on 01/30/2013 08:40 -0500
A stunner out of the BEA which just reported a Q4 GDP of -0.1% that was leaps and bounds below the 1.1% estimate, and a plunge from Q3′s 3.1%. The factors: Private Inventories, Exports and Government Expenditures all of which contracted, by -1.27%, -0.81%, and -1.33%. The silver lining was in Personal Consumption Expenditures which added 1.52% to the negative print, most of it however driven by a surge in spending ahead of the fiscal cliff. Ironically, this was the biggest government-driven detraction from growth since Q1 2011, when GDP led to a -1.49% cut in the GDP, same in Q4 when government spending on defense fell the most since 1972. The solution is simple: print moar drones. Enter Mali. And since everything is now AMZN-ing, we can’t wait for the spin that the GDP’s margins were actually better than expected, leading to a 200 point surge in the DJIA.