Economy grows in 3Q, signals end of recession

[kcshocker11]

http://news.yahoo.com/s/ap/20091029/ap_on_bi_go_ec_fi/us_economy

The economy grew at a 3.5 percent pace in the third quarter, the best showing in two years, fueled by government-supported spending on cars and homes.
The Commerce Department's report Thursday delivered the strongest signal yet that the economy entered a new, though fragile, phase of recovery and that the worst recession since the 1930s has ended.

Lots of encouraging news in this report. Now lets free up credit and put more people back to work! 8)

[Capitol Shock]

I hope your right but I'm not so optimistic. I see a report next quarter indicating the economy contracted.

Also, beware the housing bubble in Wichita in nine months. If you want to sell your house, sell it now because in nine months the market will be flooded with houses.

[ISASO]

So now that enough stimulus money has been spent (14% of the total) we can cancel that wasteful program and lessen our chances of a double-dip recession due to high inflation.

Or will the remaining amount be given in a lump sum distribution to Jeremiah Wright's church in the name of an undisclosed former member?

[Maggie]

This is obviously a good sign but you should reserve judgment until at least the Fourth Quarter GDP results are in before engaging in speculation about the economy's health.

At this point, I am skeptical that enough has been done to boost long-term economic growth. For example, the Cash for Clunkers program was a farce (its one-time “boost” is likely reflected in this 3rd Quarter number). Then you have the gorilla in the room: Debt. People rightly have questions about how that debt will be handled and all the odd talk about a second “stimulus” (which is really a third stimulus) isn't settling any nerves about the long-term prospects of the economy (not to mention all the new spending proposals being considered in Washington).

I hope this is the beginning of the end but don’t think “Mission Accomplished” banners are appropriate…yet. Another problem, politically and practically, will be unemployment – and I keep reading and hearing that it is expected to exceed 10% and hold relatively steady throughout 2010.

[ISASO]

The Marxists are desperate to claim some kind of victory...anything they stumble across that looks remotely positive will be hailed as their divine intervention.

Once the snow starts falling watch for claims that they've found a cure for global warming. Of course, that puts Al Gore in a bad spot because he needs the cash to fuel his luxury Gulfstream V.

[WuDrWu]

For example, the Cash for Clunkers program was a farce (its one-time “boost” is likely reflected in this 3rd Quarter number).

Like most, I too hope this signals the end of bad news, but that isn't how it works, ever.

The spin brigade will be out in FULL FORCE trying to convince anyone that will listen that the recession is over, hoping to spur consumer spending and keep the growth happening in Q4. We'll see.

Reports are coming out now that the C4C program cost the tax payer almost $24,000 per vehicle of new and unexpected sales. That is for every sale the program stimulated to occur (that wouldn't have occurred without the program) it cost the taxpayers $24,000. That, folks, is a perfect example of why government cannot run the economy. Eventually, they'll run out of other people's money.

The report on 1st time home buyers credit is almost as bad. Nearly $42,000/home sold is the taxpayer cost.

[ISASO]

Also, all these jobs "created or saved" cost us approx. $76,000 each.

How many of these jobs actually pay the worker $76K per year? Nary a one, I would say.

More socialist "efficiency".

[WuDrWu]

Also, all these jobs "created or saved" cost us approx. $76,000 each.

How many of these jobs actually pay the worker $76K per year? Nary a one, I would say.

More socialist "efficiency".

Great point....also, how many of these "created" jobs are going to be there in say 2 years? 3 years? 5 years?

As a brighter man than I said, "Nary a one, I would say".


Government spending doesn't fix things like this......if it did we'd never have a recession or depression, ever.

[SubGod22]

Most jobs created are gov't jobs. That doesn't solve anything.

[ISASO]

To a Marxist, that was the perfect program - government planned, government executed regardless of the efficiency and creating more government jobs paid for by tax dollars, for which we increase the debt. Then we pay interest on the money we borrow to pay the salaries of the hundreds of contractors hired as a result of their failure.

Of course the Marxist spin-meisters proclaim it as one of the most successful government programs in history. Of course when you write and re-write history everything you do is eligible to be the greatest program in history.

[SubGod22]

Unemployment is now over 10%

[WuDrWu]

Unemployment isn't going anywhere until business owners (all the evil people that make too much money on the back of poor folk) are convinced that they aren't going to be taxed into oblivion.

NOWHERE.


Why can't tax and spend liberals understand that?

[WuDrWu]

Re: Economy grows in 3Q, signals end of recession

http://news.yahoo.com/s/ap/20091029/..._fi/us_economy

The economy grew at a 3.5 percent pace in the third quarter, the best showing in two years, fueled by government-supported spending on cars and homes.
The Commerce Department's report Thursday delivered the strongest signal yet that the economy entered a new, though fragile, phase of recovery and that the worst recession since the 1930s has ended.

Lots of encouraging news in this report. Now lets free up credit and put more people back to work! 8)

Oh, hell yes! Let's borrow some more money, we're not deep enough just yet.

Let's make sure we are speaking with facts. 2 HUGE government slush funds fueled the 3rd quarter growth, 1 of which is over, and both of which are financial disasters.

And the jump in GDP is at 3.5 at a yearly pace, not just in the quarter....if they wanted to be really truthful they'd say 0.875 for the quarter instead of extrapolating the number forward for a year.

The so called stimulus package has done and will do NOTHING long term for the economy that is positive. It certainly has massively expanded the size of government, but that has nothing to do with growing the economy.


When you are capable of grasping that concept, you might be able to move on to more difficult challenges.

[Maggie]

Unemployment isn't going anywhere until business owners (all the evil people that make too much money on the back of poor folk) are convinced that they aren't going to be taxed into oblivion.

NOWHERE.


Why can't tax and spend liberals understand that?

I'll take a stab at that question. Everyone here is getting ready to watch the Yankee parade.

You are correct that at a very rudimentary level this is not complicated.

The current administration is killing the incentives for businesses to form and hire new employees. What company will hire new employees if they don't know what their contingent liability for health-care and carbon will be? In other words, how can anyone develop a budget when they don't know what employment costs will be? And don't forget that the tax rates will go up in 2011 as the Bush tax cuts expire. That means new businesses will have to be even more profitable to justify investment in order to earn the same after-tax returns.

Now your question, sort of: The problem is when liberals/progressives say Obama should focus on the economy this means pushing ahead with health-care reform and another stimulus bill. This type of argument is so off-base it is stupefying.

As a public-policy matter, health-care reform won't fix the economy. It won't create lots of new jobs or rally the stock market or do anything to get us out of the recession. Even if you buy the arguments from liberals/progressives, the pay-offs are long delayed and the costs — for the treasury and the taxpayer — are front-loaded. A second (really a third, if you count Bush's) stimulus won't have any more effect than Obama's first one and the additional debt-fueled spending will only further enrage the independents and moderates who fueled GOP victories in Virginia and New Jersey.

From what I can tell, most of the people, who would describe themselves as “independents”, who believe Obama has taken his eye off the ball on the economy think his single-minded effort to push through a Democrats'-only, big-government health-care bill is evidence they are right.

Doubling that effort, which is what is happening, won't convince them otherwise.

[ISASO]

That was nails, Maggie.

What's next - Government mandates that companies hire x number of workers within the next 40 days so that Obama's first-year numbers come out right?