US GDP shrinks 2.9% in first quarter

[webfact]

US GDP shrinks 2.9% in first quarter

WASHINGTON: -- The US economy suffered its worst performance for five years in the first quarter of 2014, latest figures show.

The economy shrank at an annualised rate of 2.9% in the first three months of the year, the third estimate from the US Commerce Department showed.

This was worse than the previous estimate of a 1% contraction, and also worse than economists' expectations.

However, the economy is expected to have recorded a sharp recovery during the second quarter of the year.

The White House said the figures showed the economic recovery was still in progress, but added other indicators for April and May suggest a rebound in the second quarter.

Full story: http://www.bbc.com/news/business-28012760


-- BBC 2014-06-26

[NeverSure]

Uh, did they mention what's been in the US news all year? Is this really news to them?

"Unusually bad winter weather contributed to the economy's poor performance"

"The US economy suffered its worst performance for five years in the first quarter of 2014, latest figures show.

The economy shrank at an annualised rate of 2.9% in the first three months of the year, the third estimate from the US Commerce Department showed.

This was worse than the previous estimate of a 1% contraction, and also worse than economists' expectations.

However, the economy is expected to have recorded a sharp recovery during the second quarter of the year.

The White House said the figures showed the economic recovery was still in progress, but added other indicators for April and May suggest a rebound in the second quarter."

BBC

[johnh869]

Obama....Who is kidding who!!!!!!!!

[Ulysses G.]

This administration's chickens coming home to roost.

[neverdie]

This administration's chickens coming home to roost.

UG,

The speed at which you are quick to condemn Obama is remarkable......virtually new land speed record could possibly be set IMO.

You fail to acknowledge the crisis that the governments PREVIOUS to Obamas administration, handed to him several years ago. These guys really did bake up a nice little mess on a never seen before grandeur scale (& Im being kind).

You might need to examine your hero Mr Bush and those other turds in his administration more closely if you are looking at the real reason for the current mess.

Sadly, Americans need to look no further than their own law makers for the current mess and it's got little to do with the current administration, irregardless of how long they've been in power.

[Scott]

An off-topic post has been deleted. The thread is about the US GDP.

[capcc76]

This puts in perspective. No big deal. Just a bump in the road.

http://money.cnn.com/2014/06/25/news/economy/gdp-negative/

[NeverSure]

This administration's chickens coming home to roost.

UG,

The speed at which you are quick to condemn Obama is remarkable......virtually new land speed record could possibly be set IMO.

You fail to acknowledge the crisis that the governments PREVIOUS to Obamas administration, handed to him several years ago. These guys really did bake up a nice little mess on a never seen before grandeur scale (& Im being kind).

You might need to examine your hero Mr Bush and those other turds in his administration more closely if you are looking at the real reason for the current mess.

Sadly, Americans need to look no further than their own law makers for the current mess and it's got little to do with the current administration, irregardless of how long they've been in power.

The first quarter's drop in GDP (OP) happened on Obama's watch, 6 years into his presidency.

How is this topic about Bush, when Obama has run the national debt from about $10 tril to about $17 tril and the economy is all his now?

Besides, the major reason for the drop was the bitter winter. All signs show that it picked back up in the second quarter. Results will be out in July.

[JDGRUEN]

So - when does the obama administration take responsibility for things like the poor GDP, joblessness, the national debt, the deficit, etc.? How long does obama have to be in office before 'things' happen on his watch - 8 years and he is gone? Does the average GDP for the entire two 4 year terms of obama as president reflect his administration's policies or it is always the fault of someone else? Any CEO of the world's largest multinationational corporation who had a similar track record of poor earnings, poor or no profit, or of losses would have been CANNED in three years for not creating a turn around on what his predecessor had done with the corporation. But obama is given a pass on responsibility for everything including poor GDP performance. How is it that every president before him was responsible for what happened on their watch - but obama is not? Could it be BLIND obedience to the demigod obama by his subservient followers? obama just can't deliver that 'turn around' on the GDP or anything else can he - he is just not responsible is he or should I say 'HE' or 'HIM' or ?

[neverdie]

This administration's chickens coming home to roost.

UG,

The speed at which you are quick to condemn Obama is remarkable......virtually new land speed record could possibly be set IMO.

You fail to acknowledge the crisis that the governments PREVIOUS to Obamas administration, handed to him several years ago. These guys really did bake up a nice little mess on a never seen before grandeur scale (& Im being kind).

You might need to examine your hero Mr Bush and those other turds in his administration more closely if you are looking at the real reason for the current mess.

Sadly, Americans need to look no further than their own law makers for the current mess and it's got little to do with the current administration, irregardless of how long they've been in power.

The first quarter's drop in GDP (OP) happened on Obama's watch, 6 years into his presidency.

How is this topic about Bush, when Obama has run the national debt from about $10 tril to about $17 tril and the economy is all his now?

Besides, the major reason for the drop was the bitter winter. All signs show that it picked back up in the second quarter. Results will be out in July.

NS,

When Obama stepped into Presidency back in 2009, he was the new driver of a runaway train, I mean this loco was gassed up, running down hill and not only were the brakes missing but the throttle was locked into FULL SPEED.

How long do you think it takes to turn around arguably the largest economy in the world, especially the worlds rail lines all started to crack and jolt their carriages off the rails.

Seriously, let's go back to economics 101. The USA is going to be struggling with this baby for decades more and if you look past all the smoke and mirrors it may never recover.

Please, proceed to 2008, work backwards for a couple of decades, all the answers are there.

I just know you and UG (& some others) love to bash Obama at every turn, but there's a lot more to this than one douchebag, especially since there's been a succession of them for the last (insert desired number) years.

Perhaps you might like to submit your thesis on how this could of all been turned around in just a few years.

Are you familiar with the 'Great Depression' ? Arguably it started around 1929 & things were still bad in the 1940s. The GFC was arguably bigger than that, depending on which way you look at it.

So please, perhaps you and UG and a few of the others could lay off the Obama bashing for a while, because your clueless comments are looking nothing but comical.

Ps; I agree with your last statement about winter & perhaps a bumper quarter will follow. Fingers crossed !

Edited June 26, 2014 by neverdie

[NeverSure]

This administration's chickens coming home to roost.

UG,

The speed at which you are quick to condemn Obama is remarkable......virtually new land speed record could possibly be set IMO.

You fail to acknowledge the crisis that the governments PREVIOUS to Obamas administration, handed to him several years ago. These guys really did bake up a nice little mess on a never seen before grandeur scale (& Im being kind).

You might need to examine your hero Mr Bush and those other turds in his administration more closely if you are looking at the real reason for the current mess.

Sadly, Americans need to look no further than their own law makers for the current mess and it's got little to do with the current administration, irregardless of how long they've been in power.

The first quarter's drop in GDP (OP) happened on Obama's watch, 6 years into his presidency.

How is this topic about Bush, when Obama has run the national debt from about $10 tril to about $17 tril and the economy is all his now?

Besides, the major reason for the drop was the bitter winter. All signs show that it picked back up in the second quarter. Results will be out in July.

NS,

When Obama stepped into Presidency back in 2009, he was the new driver of a runaway train, I mean this loco was gassed up, running down hill and not only were the brakes missing but the throttle was locked into FULL SPEED.

How long do you think it takes to turn around arguably the largest economy in the world, especially the worlds rail lines all started to crack and jolt their carriages off the rails.

Seriously, let's go back to economics 101. The USA is going to be struggling with this baby for decades more and if you look past all the smoke and mirrors it may never recover.

Please, proceed to 2008, work backwards for a couple of decades, all the answers are there.

I just know you and UG (& some others) love to bash Obama at every turn, but there's a lot more to this than one douchebag, especially since there's been a succession of them for the last (insert desired number) years.

Perhaps you might like to submit your thesis on how this could of all been turned around in just a few years.

Are you familiar with the 'Great Depression' ? Arguably it started around 1929 & things were still bad in the 1940s. The GFC was arguably bigger than that, depending on which way you look at it.

So please, perhaps you and UG and a few of the others could lay off the Obama bashing for a while, because your clueless comments are looking nothing but comical.

Ps; I agree with your last statement about winter & perhaps a bumper quarter will follow. Fingers crossed !

"How long do you think it takes to turn around arguably the largest economy in the world, especially the worlds rail lines all started to crack and jolt their carriages off the rails."

I don't know. Maybe another 7 trillion dollars in debt trying to stimulate?

Don't you think that national debt actually weighs down the country? (By the way, I can't stand Bush either - just not letting Obama skate free for his part of this economy.)

[neverdie]

[

I don't know. Maybe another 7 trillion dollars in debt trying to stimulate?

Don't you think that national debt actually weighs down the country? (By the way, I can't stand Bush either - just not letting Obama skate free for his part of this economy.)

Answer to your question is, DEFINATELY !

I'm certainly not saying that the man nor his administration is without fault (far from it) but he's far from being solely responsible for the present situation.

Go back to UG's earlier comment. It's Priceless. Surely he kids?

[Pakboong]

You actually need to go back to 1913 to find who was at the wheel when this disaster started. None of the recent guys have any idea what they need to do. It will not be easy as it is very close to impossible. Our big problem right now is that the little Russian knows what needs to be done and clearly we do not.

[impulse]

[

I don't know. Maybe another 7 trillion dollars in debt trying to stimulate?

Don't you think that national debt actually weighs down the country? (By the way, I can't stand Bush either - just not letting Obama skate free for his part of this economy.)

Answer to your question is, DEFINATELY !

I'm certainly not saying that the man nor his administration is without fault (far from it) but he's far from being solely responsible for the present situation.

Go back to UG's earlier comment. It's Priceless. Surely he kids?

+1. The question gets back to who's responsible, they guy that ran up the credit card or the next guy (or 10 guys) who will be writing the checks for the next 50 years to clean up the mess.

BTW, not an Obama fan myself. I was. Not any more. But this isn't why.

Edited June 26, 2014 by impulse

[chuckd]

This administration's chickens coming home to roost.

UG,

The speed at which you are quick to condemn Obama is remarkable......virtually new land speed record could possibly be set IMO.

You fail to acknowledge the crisis that the governments PREVIOUS to Obamas administration, handed to him several years ago. These guys really did bake up a nice little mess on a never seen before grandeur scale (& Im being kind).

You might need to examine your hero Mr Bush and those other turds in his administration more closely if you are looking at the real reason for the current mess.

Sadly, Americans need to look no further than their own law makers for the current mess and it's got little to do with the current administration, irregardless of how long they've been in power.

The first quarter's drop in GDP (OP) happened on Obama's watch, 6 years into his presidency.

How is this topic about Bush, when Obama has run the national debt from about $10 tril to about $17 tril and the economy is all his now?

Besides, the major reason for the drop was the bitter winter. All signs show that it picked back up in the second quarter. Results will be out in July.

NS,

When Obama stepped into Presidency back in 2009, he was the new driver of a runaway train, I mean this loco was gassed up, running down hill and not only were the brakes missing but the throttle was locked into FULL SPEED.

How long do you think it takes to turn around arguably the largest economy in the world, especially the worlds rail lines all started to crack and jolt their carriages off the rails.

Seriously, let's go back to economics 101. The USA is going to be struggling with this baby for decades more and if you look past all the smoke and mirrors it may never recover.

Please, proceed to 2008, work backwards for a couple of decades, all the answers are there.

I just know you and UG (& some others) love to bash Obama at every turn, but there's a lot more to this than one douchebag, especially since there's been a succession of them for the last (insert desired number) years.

Perhaps you might like to submit your thesis on how this could of all been turned around in just a few years.

Are you familiar with the 'Great Depression' ? Arguably it started around 1929 & things were still bad in the 1940s. The GFC was arguably bigger than that, depending on which way you look at it.

So please, perhaps you and UG and a few of the others could lay off the Obama bashing for a while, because your clueless comments are looking nothing but comical.

Ps; I agree with your last statement about winter & perhaps a bumper quarter will follow. Fingers crossed !

First off, let me be the first to point out the National Bureau of Economic Research declared the 2007 recession OVER in June 2009. While your statements are true that when Obama took office, the recession was active, what you have failed to point out is the recession officially ended five months into his administration.

http://money.cnn.com/2010/09/20/news/economy/recession_over/

This administration has been in a recovery period for the past five years, not a recession. It has proven to be the worst recovery period since WWII.

The imaginary runaway train stopped shortly after Obama took office. It is now in an "I think I can...I think I can" mode but is having a hard time climbing that hill.

Following are two articles discussing the RECOVERY reflecting its anemic nature.

----------------------------------------------------------------------------------

The Worst Four Years Of GDP Growth In History: Yes, We Should Be Worried

By J.T. Young

It is time America stopped talking about the recovery and started worrying about the economy. As the four-year anniversary since the economy last shrank approaches, we should focus on its subpar growth. It is time to ask what impact government has had on the economy over the short- and long-term.

America’s economy has not shrunk since Q2 of 2009. Yet, if the Congressional Budget Office’s estimates of just 1.4% real GDP growth this year prove true, America will have experienced its worst four consecutive growth years of GDP in the Bureau of Economic Analysis’ data going back to 1930.

Looking at the economy in 10-year increments starting from 1948 (when declines from wartime spending had ended), averaging GDP’s annual growth percentage shows the following:

1948-57: 3.80%

1958-67: 4.28%

1968-77: 3.18%

1978-87: 3.15%

1988-97: 3.05%

1998-2007: 2.99%

2008-2013: 0.73%

http://www.forbes.com/sites/realspin/2013/04/12/the-worst-four-years-of-gdp-growth-in-history-yes-we-should-be-worried/

---------------------------------------------------------------------------------------

<and>

---------------------------------------------------------------------------------------

The limp economic recovery, five years on

John H. Makin | American Enterprise Institute

April 29, 2014

Economic growth has been weak compared to other post-WWII recoveries.

Key points:

...Economic growth since the end of the 2008 financial crisis has been considerably below the average of other post–World War II recoveries.

...Weak growth of investments and employment and slow turnaround of consumption spending have contributed to the troubling pace of this recovery.

...To elevate and sustain growth, the US government must reverse disinflation before it becomes deflation, reduce marginal tax rates on capital accumulation, and provide clear leadership that focuses on building opportunity.

http://www.aei.org/outlook/economics/the-limp-economic-recovery-five-years-on/?utm_source=google&utm_medium=ads&utm_campaign=makineconrecovery&utm_content=outlook&gclid=CPyKhvPblr8CFVgQjgodJWMAAQ

-------------------------------------------------------------------------------------

Your knowledge of what got us into this mess in the first place is sorely lacking. You might want to look up the Community Reinvestment Act of 1979 to see the impact that Democrat Jimmy Carter's legislation had on the housing bubble, which arguably promulgated the recession of 2007.

If you should decide to do some research on this issue, get back with us and we can discuss exactly what led to the recession.

Cheers

Edit in: Typo

Edited June 26, 2014 by chuckd

[bkkden]

It was all weather related and the second, third and fourth quarters will come in around +3.5%. Hoping that finishing the taper and the strong second half kick off some inflationary pressures so we can get some bond yields!

Sent from my iPhone using Thaivisa Connect Thailand

[impulse]

To elevate and sustain growth, the US government must reverse disinflation before it becomes deflation, reduce marginal tax rates on capital accumulation, and provide clear leadership that focuses on building opportunity.

Yes, because a reduced marginal tax rate on capital accumulation is what 99% of Americans are needing.

Or was it 1% that want that, and the other 99% would like to see that favorably taxed capital accumulation actually invested in the USA, on US jobs? And not on some nebulous derivative tied to the ratio of the corn crop in Iowa vs the tea crop in Tibet. Or building another sweatshop in Vietnam to offshore more jobs.

I get mixed up on that issue.

Edited June 26, 2014 by impulse

[Thai at Heart]

Tapering isnt apparently the easiest thing to do. That is a biiiiiiiiig bump. 2.9%.

Wow

[neverdie]

First off, let me be the first to point out the National Bureau of Economic Research declared the 2007 recession OVER in June 2009. While your statements are true that when Obama took office, the recession was active, what you have failed to point out is the recession officially ended five months into his administration.

http://money.cnn.com/2010/09/20/news/economy/recession_over/

This administration has been in a recovery period for the past five years, not a recession. It has proven to be the worst recovery period since WWII.

The imaginary runaway train stopped shortly after Obama took office. It is now in an "I think I can...I think I can" mode but is having a hard time climbing that hill.

Following are two articles discussing the RECOVERY reflecting its anemic nature.

----------------------------------------------------------------------------------

The Worst Four Years Of GDP Growth In History: Yes, We Should Be Worried

By J.T. Young

It is time America stopped talking about the recovery and started worrying about the economy. As the four-year anniversary since the economy last shrank approaches, we should focus on its subpar growth. It is time to ask what impact government has had on the economy over the short- and long-term.

Americas economy has not shrunk since Q2 of 2009. Yet, if the Congressional Budget Offices estimates of just 1.4% real GDP growth this year prove true, America will have experienced its worst four consecutive growth years of GDP in the Bureau of Economic Analysis data going back to 1930.

Looking at the economy in 10-year increments starting from 1948 (when declines from wartime spending had ended), averaging GDPs annual growth percentage shows the following:

1948-57: 3.80%

1958-67: 4.28%

1968-77: 3.18%

1978-87: 3.15%

1988-97: 3.05%

1998-2007: 2.99%

2008-2013: 0.73%

http://www.forbes.com/sites/realspin/2013/04/12/the-worst-four-years-of-gdp-growth-in-history-yes-we-should-be-worried/

---------------------------------------------------------------------------------------

<and>

---------------------------------------------------------------------------------------

The limp economic recovery, five years on

John H. Makin | American Enterprise Institute

April 29, 2014

Economic growth has been weak compared to other post-WWII recoveries.

Key points:

...Economic growth since the end of the 2008 financial crisis has been considerably below the average of other postWorld War II recoveries.

...Weak growth of investments and employment and slow turnaround of consumption spending have contributed to the troubling pace of this recovery.

...To elevate and sustain growth, the US government must reverse disinflation before it becomes deflation, reduce marginal tax rates on capital accumulation, and provide clear leadership that focuses on building opportunity.

http://www.aei.org/outlook/economics/the-limp-economic-recovery-five-years-on/?utm_source=google&utm_medium=ads&utm_campaign=makineconrecovery&utm_content=outlook&gclid=CPyKhvPblr8CFVgQjgodJWMAAQ

-------------------------------------------------------------------------------------

Your knowledge of what got us into this mess in the first place is sorely lacking. You might want to look up the Community Reinvestment Act of 1979 to see the impact that Democrat Jimmy Carter's legislation had on the housing bubble, which arguably promulgated the recession of 2007.

If you should decide to do some research on this issue, get back with us and we can discuss exactly what led to the recession.

Cheers

Edit in: Typo

Boom, Boom, just in time, knew you would drop by, around the third drum beat.

Now you may find this hard to believe but I was just recently, in the last couple of weeks doing some reading and I was also directed to the Community Reinvestment Act of 1979, amongst some other things and as I am an avid follower of this whole mess (you might understand I have a small horse in the cup) I spend a fair amount of time reading about what's going on. Having said that I am far from offering an opinion as to what the solution to the problem is.

Anyway, despite the rhetoric you've already provided, you can see in this case we are arguing the same point. The situation was not created by Obama as UG would have led the forum to have believed.

Irregardless of your posted information and a play of words, with regards to what constitutes a recession verses what constitutes a recovery following a recession, the state of play is still the same. At the present time the American economy is struggling to break even, national debt is staggering and showing no or little signs of recovery and some would even question whether or not the current levels of debt are even serviceable.

Anyway, back to the original statement of UG, "Obama is responsible". My call, "Rubbish, there's a lot more to this than the faults of the current administration. What was your point again?

[chuckd]

First off, let me be the first to point out the National Bureau of Economic Research declared the 2007 recession OVER in June 2009. While your statements are true that when Obama took office, the recession was active, what you have failed to point out is the recession officially ended five months into his administration.

http://money.cnn.com/2010/09/20/news/economy/recession_over/

This administration has been in a recovery period for the past five years, not a recession. It has proven to be the worst recovery period since WWII.

The imaginary runaway train stopped shortly after Obama took office. It is now in an "I think I can...I think I can" mode but is having a hard time climbing that hill.

Following are two articles discussing the RECOVERY reflecting its anemic nature.

----------------------------------------------------------------------------------

The Worst Four Years Of GDP Growth In History: Yes, We Should Be Worried

By J.T. Young

It is time America stopped talking about the recovery and started worrying about the economy. As the four-year anniversary since the economy last shrank approaches, we should focus on its subpar growth. It is time to ask what impact government has had on the economy over the short- and long-term.

Americas economy has not shrunk since Q2 of 2009. Yet, if the Congressional Budget Offices estimates of just 1.4% real GDP growth this year prove true, America will have experienced its worst four consecutive growth years of GDP in the Bureau of Economic Analysis data going back to 1930.

Looking at the economy in 10-year increments starting from 1948 (when declines from wartime spending had ended), averaging GDPs annual growth percentage shows the following:

1948-57: 3.80%

1958-67: 4.28%

1968-77: 3.18%

1978-87: 3.15%

1988-97: 3.05%

1998-2007: 2.99%

2008-2013: 0.73%

http://www.forbes.com/sites/realspin/2013/04/12/the-worst-four-years-of-gdp-growth-in-history-yes-we-should-be-worried/

---------------------------------------------------------------------------------------

<and>

---------------------------------------------------------------------------------------

The limp economic recovery, five years on

John H. Makin | American Enterprise Institute

April 29, 2014

Economic growth has been weak compared to other post-WWII recoveries.

Key points:

...Economic growth since the end of the 2008 financial crisis has been considerably below the average of other postWorld War II recoveries.

...Weak growth of investments and employment and slow turnaround of consumption spending have contributed to the troubling pace of this recovery.

...To elevate and sustain growth, the US government must reverse disinflation before it becomes deflation, reduce marginal tax rates on capital accumulation, and provide clear leadership that focuses on building opportunity.

http://www.aei.org/outlook/economics/the-limp-economic-recovery-five-years-on/?utm_source=google&utm_medium=ads&utm_campaign=makineconrecovery&utm_content=outlook&gclid=CPyKhvPblr8CFVgQjgodJWMAAQ

-------------------------------------------------------------------------------------

Your knowledge of what got us into this mess in the first place is sorely lacking. You might want to look up the Community Reinvestment Act of 1979 to see the impact that Democrat Jimmy Carter's legislation had on the housing bubble, which arguably promulgated the recession of 2007.

If you should decide to do some research on this issue, get back with us and we can discuss exactly what led to the recession.

Cheers

Edit in: Typo

Boom, Boom, just in time, knew you would drop by, around the third drum beat.

Now you may find this hard to believe but I was just recently, in the last couple of weeks doing some reading and I was also directed to the Community Reinvestment Act of 1979, amongst some other things and as I am an avid follower of this whole mess (you might understand I have a small horse in the cup) I spend a fair amount of time reading about what's going on. Having said that I am far from offering an opinion as to what the solution to the problem is.

Anyway, despite the rhetoric you've already provided, you can see in this case we are arguing the same point. The situation was not created by Obama as UG would have led the forum to have believed.

Irregardless of your posted information and a play of words, with regards to what constitutes a recession verses what constitutes a recovery following a recession, the state of play is still the same. At the present time the American economy is struggling to break even, national debt is staggering and showing no or little signs of recovery and some would even question whether or not the current levels of debt are even serviceable.

Anyway, back to the original statement of UG, "Obama is responsible". My call, "Rubbish, there's a lot more to this than the faults of the current administration. What was your point again?

I would have thought my point was obvious. Obama has managed the RECOVERY miserably.

Government regulations, tax increases, increased government spending, increased "real" unemployment, medical industry in an uproar, mismanaging the energy sector, foreign policy in disarray, to name only a few, of his policies have had an adverse impact on GDP growth and the RECOVERY.

The situation, as you call it, is the RECOVERY...not what got us into the situation.

The recession was declared over in June 2009.

The RECOVERY is what has failed and it was all on his watch.

I also expect the next quarter, if it's as bad as previous quarters, will be due to the hot summer. You know, global warming and all.

Edited June 26, 2014 by chuckd

[neverdie]

The RECOVERY is what has failed and it was all on his watch.

I also expect the next quarter, if it's as bad as previous quarters, will be due to the hot summer. You know, global warming and all.

If you think I'm going to argue with you over the first point above, I will have to disappoint you. I'm not a fan of endless amounts of printing of fiat money and everything that this administration has done, but I don't lay everything to blame at the feet of one man either, so much more went into this, so much failed policy and legislation.

Wouldn't it be interesting if we could reverse time and place different people into power and then let it all play out again. Wonder where we'd be today? I'm betting not far from the present situation, one way or the other.

I really like your second comment Chuckd, I hope your wrong of course, but it's funny never the less.

Sadly the rest of the world is suffering as a result of failed American policies, EVERYTIME bad news comes out it sends jolts through the marketplace. I for one would like to see a proper recovery, but it would seem the states is in a similar state as so many other countries in the world.....too many bloody politicians and not a decent one amongst them.

[Asiantravel]

This administration's chickens coming home to roost.

UG,

The speed at which you are quick to condemn Obama is remarkable......virtually new land speed record could possibly be set IMO.

You fail to acknowledge the crisis that the governments PREVIOUS to Obamas administration, handed to him several years ago. These guys really did bake up a nice little mess on a never seen before grandeur scale (& Im being kind).

You might need to examine your hero Mr Bush and those other turds in his administration more closely if you are looking at the real reason for the current mess.

Sadly, Americans need to look no further than their own law makers for the current mess and it's got little to do with the current administration, irregardless of how long they've been in power.

What!? Next they will be blaming Bush for the Obama care disaster

[impulse]

This administration's chickens coming home to roost.

UG,

The speed at which you are quick to condemn Obama is remarkable......virtually new land speed record could possibly be set IMO.

You fail to acknowledge the crisis that the governments PREVIOUS to Obamas administration, handed to him several years ago. These guys really did bake up a nice little mess on a never seen before grandeur scale (& Im being kind).

You might need to examine your hero Mr Bush and those other turds in his administration more closely if you are looking at the real reason for the current mess.

Sadly, Americans need to look no further than their own law makers for the current mess and it's got little to do with the current administration, irregardless of how long they've been in power.

What!? Next they will be blaming Bush for the Obama care disaster

You mean that "disaster" where just about every single horror story about its poor, poor victims has unraveled when the details were actually investigated?

Obama has done a lot of things wrong. Obamacare isn't one of them. There's some hiccups, and some winners and some losers. There always are when you change deeply entrenched interests.

Wouldn't it be a hoot if the drop in GDP is lower health care costs and less military spending? (Not saying that's the case)

Edited June 26, 2014 by impulse

[BadBouy]

This administration's chickens coming home to roost.

UG,

The speed at which you are quick to condemn Obama is remarkable......virtually new land speed record could possibly be set IMO.

You fail to acknowledge the crisis that the governments PREVIOUS to Obamas administration, handed to him several years ago. These guys really did bake up a nice little mess on a never seen before grandeur scale (& Im being kind).

You might need to examine your hero Mr Bush and those other turds in his administration more closely if you are looking at the real reason for the current mess.

Sadly, Americans need to look no further than their own law makers for the current mess and it's got little to do with the current administration, irregardless of how long they've been in power.

Now that's funny!!!

[BadBouy]

ND

"...too many bloody politicians and not a decent one amongst them. "

I'm on board with you on this statement.

[Ulysses G.]

First off, let me be the first to point out the National Bureau of Economic Research declared the 2007 recession OVER in June 2009. While your statements are true that when Obama took office, the recession was active, what you have failed to point out is the recession officially ended five months into his administration.

http://money.cnn.com/2010/09/20/news/economy/recession_over/

This administration has been in a recovery period for the past five years, not a recession. It has proven to be the worst recovery period since WWII.

The imaginary runaway train stopped shortly after Obama took office. It is now in an "I think I can...I think I can" mode but is having a hard time climbing that hill.

Following are two articles discussing the RECOVERY reflecting its anemic nature.

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The Worst Four Years Of GDP Growth In History: Yes, We Should Be Worried

By J.T. Young

It is time America stopped talking about the recovery and started worrying about the economy. As the four-year anniversary since the economy last shrank approaches, we should focus on its subpar growth. It is time to ask what impact government has had on the economy over the short- and long-term.

Americas economy has not shrunk since Q2 of 2009. Yet, if the Congressional Budget Offices estimates of just 1.4% real GDP growth this year prove true, America will have experienced its worst four consecutive growth years of GDP in the Bureau of Economic Analysis data going back to 1930.

Looking at the economy in 10-year increments starting from 1948 (when declines from wartime spending had ended), averaging GDPs annual growth percentage shows the following:

1948-57: 3.80%

1958-67: 4.28%

1968-77: 3.18%

1978-87: 3.15%

1988-97: 3.05%

1998-2007: 2.99%

2008-2013: 0.73%

http://www.forbes.com/sites/realspin/2013/04/12/the-worst-four-years-of-gdp-growth-in-history-yes-we-should-be-worried/

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<and>

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The limp economic recovery, five years on

John H. Makin | American Enterprise Institute

April 29, 2014

Economic growth has been weak compared to other post-WWII recoveries.

Key points:

...Economic growth since the end of the 2008 financial crisis has been considerably below the average of other postWorld War II recoveries.

...Weak growth of investments and employment and slow turnaround of consumption spending have contributed to the troubling pace of this recovery.

...To elevate and sustain growth, the US government must reverse disinflation before it becomes deflation, reduce marginal tax rates on capital accumulation, and provide clear leadership that focuses on building opportunity.

http://www.aei.org/outlook/economics/the-limp-economic-recovery-five-years-on/?utm_source=google&utm_medium=ads&utm_campaign=makineconrecovery&utm_content=outlook&gclid=CPyKhvPblr8CFVgQjgodJWMAAQ

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Your knowledge of what got us into this mess in the first place is sorely lacking. You might want to look up the Community Reinvestment Act of 1979 to see the impact that Democrat Jimmy Carter's legislation had on the housing bubble, which arguably promulgated the recession of 2007.

If you should decide to do some research on this issue, get back with us and we can discuss exactly what led to the recession.

Anyway, back to the original statement of UG, "Obama is responsible".

I would have thought my point was obvious. Obama has managed the RECOVERY miserably.

I did not say that Obama was responsible for what happened when Bush was in office. I said that he was responsible for the last 5 1/2 years since he has been president, but of course, neverdie already knows that.

Edited June 26, 2014 by Ulysses G.

[capcc76]

Obama is undoubtedly the biggest idiot and poorest decision maker we have ever had as a Preseident. The guys does nothing but talk and telegraph his every move in a foreign policy security matters. He is unbelievably weak.

That being said, all you guys blaming him for printing money,national debt and slow or bumpy growth fail to acknowledge or appreciate how expensive it was to save our banks and fill the extreme void caused by CMOs, reduction in real estate values and mass foreclosures.

the various itenerations of the QEs was necessary to fill the massive voids on baking balance sheets, not just in the US, but world wide. Most of the later QE landed on foreign bank balance sheets to bring the reserves in line, provide liquidity and keep them viable. QE was also needed to plug the massive debt voids caused by the decision to have the government guarantee CMO bonds. A move without precedent and reflects who knew what and when and who was determined to line their pockets when they knew this would ultimately take banks down. Then the AIG credit swaps . . .

Yes, Obama is stupid and weak, but many involved in and backing the Bush administration was corrupt and seemed to focus more on personally profiting than adverting a problem that eventually almost took down the world banking system and the entire insurance industry. If we lost AIG, it would have taken most of the rest with them due to reinsurance structure.

[Loptr]

This puts in perspective. No big deal. Just a bump in the road.

http://money.cnn.com/2014/06/25/news/economy/gdp-negative/

I find it hilarious that you would cite an article from CNN... The truth is that the US economy is in free-fall and TPTB have lost control, no matter how they manipulate the data... All one has to do to find the truth is to do some research instead of blindly believing what the media tells you... There is no economic recovery in the US or the world for that matter... The latest excuse is the weather... The economic situation around the world today is far, far worse than in 2008... They are now calling for a 4.0% jump in GDP in the 2nd Qtr... What excuse will be used to lie to the people when the 2nd Qtr GDP print is in the toilet again...

Here is a simple example... If the unemployment rate was calculated to same way today as it was in 1994, the unemployment rate in the US would be 41%... Do you call that a recovery?

[Thai at Heart]

The RECOVERY is what has failed and it was all on his watch.

I also expect the next quarter, if it's as bad as previous quarters, will be due to the hot summer. You know, global warming and all.

If you think I'm going to argue with you over the first point above, I will have to disappoint you. I'm not a fan of endless amounts of printing of fiat money and everything that this administration has done, but I don't lay everything to blame at the feet of one man either, so much more went into this, so much failed policy and legislation.

Wouldn't it be interesting if we could reverse time and place different people into power and then let it all play out again. Wonder where we'd be today? I'm betting not far from the present situation, one way or the other.

I really like your second comment Chuckd, I hope your wrong of course, but it's funny never the less.

Sadly the rest of the world is suffering as a result of failed American policies, EVERYTIME bad news comes out it sends jolts through the marketplace. I for one would like to see a proper recovery, but it would seem the states is in a similar state as so many other countries in the world.....too many bloody politicians and not a decent one amongst them.

The only way is to devalue their way out of debt. It will happen inevitably. There is no way to earn and repay this amount of money.

Whether it is one, 5, or 10 years the UsD will drop in value.

What were his options borrow to pump money into the economy to keep it moving or not and let it go into freefall.

Neither a particularly nice choice. At least the wheels are still turning because how bad would the drop have been if the decision would have been austerity?

That doesn't bear thinking about.

Edited June 26, 2014 by Thai at Heart

[Loptr]

You actually need to go back to 1913 to find who was at the wheel when this disaster started. None of the recent guys have any idea what they need to do. It will not be easy as it is very close to impossible. Our big problem right now is that the little Russian knows what needs to be done and clearly we do not.

The BRICS have become tired of the US hegemony game and are making moves to dethrone the USD as the world's reserve currency... It's only a matter of time... As always, follow the money, or in this case, follow the gold... For those that don't believe it, do a bit of research before attacking the claim and you will find that this is taking place now at a far faster pace than anyone imagined...