Economy in freefall? 1Q revision shows shrinkage of 2.9%

America's economy shrank at a drastic 2.9 percent annual rate in the first quarter, a far more alarming picture than ones painted in two previous government estimates -- including one that actually claimed modest growth. The new figure released Wednesday by the Commerce Department is nearly three times lower than last month's preliminary estimate of 1 percent shrinkage -- at the time the worst three-month performance since 2009 -- and far greater than the 0.1 percent growth estimate in April. The sluggish economy's woes have been widely attributed to an unusually cold winter, but the latest figure -- the biggest difference between second and third estimates since 1976 -- could indicate far greater problems. While economists attributed those bad numbers to weather and other factors, the jarring number, dubbed "an absolute disaster" by Wall Street blog ZeroHedge.com - is more difficult to dismiss.

FOX News
I know... it's FOX News..... But they are government numbers.

Thank goodness our economy is booming.

"Bad weather".....Rrriiiiiiiight.
Darn that global warming!
THIS should be the #1 story in the national news today...but it seems ONLY FOX News is reporting on it.

a reply to: IAMTAT

I have seen it being reported on all MSM today, just not as much as they probably should. I think the main reason is that they don't want people to panic. Also, what is the average person going to do about it anyways?

The reason that our economy is shrinking is due to people not being payed what they are worth, thus having no money to spend. In order for the economy to be healthy we need a large and strong middle class. If we don't there is nothing keeping us afloat.

Guys, DONT WORRY! Everything is OK! The S&P is up today by almost a half percent, continuing its legitimate and totally un-manipulated illogical explosion towards the psychological benchmark of 2000! DOW is up! Nas is UP! Unemployment has FALLEN!

THE ECONOMY IS GREAT!!!

/end sarcasm

originally posted by: IAMTAT
"Bad weather".....Rrriiiiiiiight.
Darn that global warming!
THIS should be the #1 story in the national news today...but it seems ONLY FOX News is reporting on it.

Yes, rain keeps people away from the polls and it also keeps them away from jobs.

I might try that excuse tomorrow with my boss if it is raining.

originally posted by: IAMTAT
"Bad weather".....Rrriiiiiiiight.
Darn that global warming!
THIS should be the #1 story in the national news today...but it seems ONLY FOX News is reporting on it.

Ah cus its fox news, the right arm of the Republican party. The most biased channel on the air. And they call it news. There is no news there only propaganda. You might as well be watching government controlled Russian tv lol. Seriously.

Nobody of a right mind takes anything seriously reported on fox news.

Oh, I am an independent by the way.

The Bot

a reply to: CaticusMaximus

Oh, BTW... if this happens a second quarter (or maybe this is enough), I guarantee you, war is coming.

No sarcasm.

a reply to: dlbott
These were Commerce Dept. numbers. Why shouldn't FOX report on it?

a reply to: dlbott

Are you serious? They are not Fox's numbers. "I am an independent." Give me a break man! Do your research.

a reply to: dlbott

You might as well be watching government controlled Russian tv lol.

Well....
They are government numbers that they are reporting.... so you are kind of right in a way.

The real numbers are probably much worse.

An even better question is what does this matter to the average citizen? You know on a daily basis what does this matter to you personally? Yeah me too. Nothing. I reply to: Euphem

originally posted by: Euphem
a reply to: IAMTAT
Also, what is the average person going to do about it anyways?

Stop voting for politicians whose economic policies don't work. It's probably too late already, but it's something we can all do.

I don't look for Q2 to be as bad, maybe even a slight expansion, but I look for Q3 to be a huge plunge, and Q4 to start disaster tracks.

a reply to: CaticusMaximus

EU's FTSE and DAX are down though.

Economy in freefall?!

Here's a simple explanation on how it really works.

*edit - playback disabled... here's the youtube link


You're welcome

a reply to: Euphem

You really think our economic problems are simply people not being paid what they are worth? LOL Seriously that is the most oversimplification of a very complex issue I think I've ever heard. Not only that, it's not even remotely accurate as to why our economy has been circling the drain for the last 30+ years. QE, ZIRP, our pathetic trade policies, H1B Visas, illegal immigration, Wallstreet corruption, government intervention in the RE market, cheap government subsidised college loans, etc. etc.

Labor is a commodity…..plain and simple. Do you understand what that means? In a capitalistic economy people aren't supposed to be paid what they are worth. Labor is traded like anything else and people are willing to do a job based on what the market demand and price is. Labor is simply an input cost for businesses. That is why unions are important. However, the problem with unions is we don't need more JOBS in America……WE NEED MORE WEALTH CREATION! Every idiot in every corner of society and government keeps talking about jobs jobs jobs………BS! More jobs just leads to more lemmings and wage slavery. We need ASSET AND WEALTH creation among Americans. We need a union for WEALTH! Meaning every American should be getting wealthier and there should be MORE CAPITAL for everyone to go around. However, we live in a state of constant crony capitalism.

America needs more small business creation, we need more support at the entrepeneurial level, we need more responsible and efficient allocation of capital. Every single American has the chance to be their own mini capitalist. We need broad based ownership of capital markets and stocks/bonds etc. Let the chips fall where they may with real estate. Screw the banks! Screw baililng out Wallstreet! And also we need to put the kabosh on illegal immigration!

I could go on and on. Every aspect of our economy nowadays is subsidized or manipulated by GOVERNMENT which has allowed corporations the become overwhelmingly powerful to the point where they have undermined our democracy and hijacked our ability to have a representative government that has the people's best interests. Corporate America in now way reflects capitalism. Thats why I get so sick and tired of people screaming capitalism is the root of all evil. WE don't have a capitalist economy and probably haven't for a long long time. If allowed to function as its supposed to and if there are certain natural and societal mechanisms in place to control redistribution of capital and allocation capitalism is a beautiful thing. We have a fascist government that exists to grow the corporate wallstreet slave economy we are living in right now.

Everybody wanted to bash Ron Paul as the kooky old racist weird guy. Well you know what he might have been all those things…….SO WHAT? He was the ONLY candidate talking about REAL reform and talking about the most important aspect of our economy, THE FED and either auditing it or completely abolishing it. He views weren't perfect but they were a point in the right direction. If we don't change this infinite power of being able to print money out of thin air nothing will ever change.

Anyways, GDP in Q2 will probably be as bad or a little better so that says we are in a recession when you add them together. Wallstreet NEEDS to tank and so does real estate. The sooner it happens to sooner we can get back to a proper recovery.

And Obama has been the worst economic disaster this country has ever seen. He knows NOTHING about business or running an economy. Yellen will be a complete disaster like Bernanke.

I'm going to try to be much briefer for a while, bear with me if I seem brusque or rude, that's not my intention.

Euphem. Raising wages won't improve the economy. Without an increase in production it's just inflationary. Economists know that Obama's policies have slowed the recovery (Fed. Res. Research papers, etc.). The average person will realize the failures of the Liberal economic theories and vote as many of them out as they can. They can also tell their neighbors.

AutumnWitch657We aren't even close in measuring GDP, yet the government relies on those numbers for financial moves that affect everyone. A shrinking economy means fewer jobs and smaller payrolls. Yes, that affects you and everybody else.

CaticusMaximus Next quarter's numbers will show growth. Why? Because if they don't we are officially in a recession. It will be Obama's recession in a way which even Liberals will be unable to honestly deny. The numbers will be falsified. Obama needs some growth on the books, whether it's real or not. And, all the Democrats supported him.

Still Liberal? You don't have a good argument. You don't even have a good excuse.

Should I stick with the new style?

a reply to: butcherguy

You have to realize at this point it is Bushes fault and FOX New is a conspiracy to overthrow the Obama administration. These numbers are the most trust worthy the administration could ever give out. To say anything different would strictly be a racist comment.

If you want a bump in the economy you need to give out more welfare and unemployment so the low income people can stimulate the economy through purchases at Walmart once they unionize and pay their people what they are worth. The poor are the ones supporting the economy anyway.

/smartass sarcasim

a reply to: jjkenobi

Name ONE politician in office that has any economic solutions that actually work or even has an inkling of an understanding about capitalism and business and economics in general. The democrats are absolutely clueless as to what it takes to run an economy. They would print to infinity and put everyone on the government dole if they had their way. The Republicans? Please they don't understand free markets lest they see their corporate banker and wallstreet corporate buddies sink and fall. They'd never let that happen hence they are all about the bailouts and endless money printing. Americans were behind Ron Paul who had some very unique and drastic ideas about the economy. That's what it's going to take, DRASTIC measures to right this economic ship that the left and the right have no balls to put in place.

With a constant influx if illegals from countries like Mexicoa, Haiti, Somalia, Middle East, Central America etc…the democrats will probably once again be voted into office in 2016 and the midde class tax paying hardworking American will be snubbed again. Our economic problems are very closely tied to our open borders and influx of third world poverty as well.