Political Discussions
House of Cards 2.0
Posted by insideskinny • 13 days ago • Subscribe to this Discussion [RSS] • Report This Topic
Topics: Democrat, economics, healthcare, republican
Did this market seem resilient this week or what? I must admit that I was surprised, but the lack of volume on Friday made me think I had forgotten about a holiday. At the risk of sounding redundant, lets go back and look at the GDP report and the FOMC statement. Is the FOMC in a corner? Was GDP really as good as was reported? If so, is it sustainable? Further, can the number be manipulated? How far can the GDP be moved by a small change in the deflator?
The rest of this post can be read at www.stockshotz.blogspot.com
I encourage everyone to read it and please debate if you disagree.
User Comments
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English por favor? -
The increase in GDP was, in my understanding, the result of two factors.
1. A temporary increase in auto sales and home sales, due to the Cash for Clunkers debacle and the Homebuyers' Tax Credit, respectively.
2. A growth in government jobs due to the wildly expanding Federal Government.
So to answer one of your questions, is this sustainable?
Not with Obama in the White House, he will do nothing to stir the free market to expand, it is completely against his ideology. -
Basically yes. GDP, like all economic measures, has its' weaknesses, and one of the huge ones is the tendency to make debt look good because all that matters, for the calculation of GDP, is the amount spent, imported and exported in one year. As a result of this, any debt incurred that is spent on domestic goods (regardless of who holds the debt or what the interest rate is or what the effect on future production and supply is) will not be counted against GDP, so private financial bubbles and government spending binges alike will register high GDP while actually destroying a nation economically - this was also seen with Japan in the 1990's.-
The lost decade...
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