Disastrous GDP numbers make double dip scare real

[Donnachaidh]

http://www.creditwritedowns.com/2011/07/disastrous-gdp-numbers-make-double-dip-scare-real.html

I have stopped reporting the quarterly GDP numbers but this last reading bears mentioning. The US Bureau of Economic Analysis reported the following at 830AM ET:

Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- increased at an annual rate of 1.3 percent in the second quarter of 2011, (that is, from the first quarter to the second quarter), according to the "advance" estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 0.4 percent.

The immediate reaction was a drop in the dollar to record lows against the Japanese yen and Swiss franc, a drop in Ten-year yields to 2.88%, a drop in the Dow Futures to –137 and a rise in the Gold price by $10 to $1626.

While the headline number was well below expectations of 1.8%, what must be noted are the major revisions. Q1 2011 is now reported as +0.4%. That’s a major downward revision which demonstrates that QE2 was in fact doing nothing for growth and that the US is already at stall speed even without the negative impact of the European sovereign debt crisis and the debt ceiling fiasco. The double dip scare is real.

More at the link --

[Tansy_Gold]

1. What double dip? I didn't know we ever got out of the first one. n/t

[MrTriumph]

2. Look for Sept & Oct bad news

We in small business knew the economy was going stall in April when high gasoline prices slowed business.

This month (July) has been especially weak. One can attribute it to the record heat wave & drought. And, because we hear it from out customers we can report it, people are worried about what is going on in Washington, D.C.

Look for BAD economic numbers in economic data to be released in Sept & Oct.

[Contrary1]

3. I first read the subject line as "Disastrous GOP"

Equally scary.

[Newest Reality]

4. For some ...

it is a another scoop; a double dip on their economic ice cream cone of doom.

For many more, it is a deeper dive into the Second Great Depression.