Good News. Economy less surprisingly bad than expected

[Kurt_and_Hunter]

This is good news, but in a "good news in an age of diminished expectations" sort of way.

Last quarter GDP was +2.4% (annualized). This was bad news because it was lower than the preceding quarter. Then everyone realized that it was actually lower than that. People estimated that it would be revised down to 1.3%. But instead it was revised down to 1.6%... which is good news... or at least the new normal of good news.

AUGUST 27, 2010, 9:40 A.M. ET.
US Stocks Open Higher After 2Q GDP Comes In Better Than Feared

NEW YORK (Dow Jones)--U.S. stocks rose Friday, sending the Dow Jones Industrial Average back above the 10000 level after a downward revision to second-quarter economic growth was not as bad as feared.

...

The gains follow a Commerce Department report showing gross domestic product, the value of all goods and services produced, rose at an annualized seasonally adjusted rate of 1.6% in April to June. The growth rate is down from the previous estimate of 2.4%, but above economists' expectations for 1.3% growth.

Nevertheless, Friday's report showed the U.S. economy grew more sluggish than initially estimated in the second quarter and corporate profits nearly dried up, confirming that the recovery is losing steam.

http://online.wsj.com/article/BT-CO-20100827-706984.html

[dkf]

1. So were the new unemployment claims.

[lumberjack_jeff]

2. +1 for the desperately optimistic headline n/t

[Kurt_and_Hunter]

3. Every cloud has a silver lining, except when it doesn't.

[taught_me_patience]

4. The good news today is that Bernocchio is prepared to shower WS with cash

Q3 has weakened significantly from Q2, so I predict a 50% chance of a negative GDP for the quarter.