Let's All Ignore the Fact that Third Quarter GDP Was Down
Much to no one's surprise, third quarter numbers for the American economy are stinkier than the moldering corpse of Adam Smith…
The Commerce Department, in its final revision, said the decline in gross domestic product in the third quarter versus the previous three months was the steepest since the third quarter of 2001, in the aftermath of the September 11 attacks on the United States.
Analysts polled by Reuters had predicted the report would show GDP declined by an unrevised 0.5 percent in the third quarter after growing at a 2.8 percent pace in the previous three months, when tax rebates temporarily helped fuel demand.
With the numbers coming in smack on target, financial markets largely ignored the report.
You know what, I think the financial markets may be on to something with this approach.
New home sales at a 17-year low? Shocker. Ignore it!
Toyota considering U.S. job cuts for the first time in, ah, ever? File under: Layoffs, who'd've thunk. Ignore it!
Oh, and if you start noticing people in your community shoplifting $4.99 bottles of sleeping pills because they don't have enough cash, ignore that too.
Just grab a couple bottles for yourself and keep moving.
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tales_b has a deep understanding of market valuation and psychology that many lack. How can the market react with ambivalence to such bad news? Well, we expected the bad news.
@Very: You have a missing link.
Thanks for information
very good
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It's bad and getting worse- but we knew that, right?
My volatility index was up this morning and the gross domestic product went right down the toilet.
ALL IS WELL! REMAIN CALM!
Its hard get apoplectic over a revision to three month old data. And I wouldn't say its being ignored. The market is off 1% today, but people are more concerned about future projections than revisions to past data.
From my point of view, as long as the Volatility Index is dropping (currently down 2%), it means good things for the stock market regardless of which direction it is going. When the Volatility Index drops, it means there is less fear-based trading and it has been dropping fairly steadily since the beginning of December.