GDP revised up for the 2nd quarter to 3.3% growth - does that change your opinion on how the economy is doing?
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2547 points
Oldman answered 3 months ago …
I just love EthanR's response...it's like Peter Lynch's advice to invest in what you sense is worthwhile. It's "eyes on the ground" in scouting terms.
The economy is sick, because we owe more than we can pay. Credit cards are used to cover real-time expenses, and mortgage holders are upside-down. The dollar's purchasing power vs other established currencies may have strenghthened a bit, but they're in 'woise' shape than we are ; Britain, Spain, Germany are in or past the credit debacle cliff.
The dollar's decline vs the cost of commodities to produce energy, materials and services has declined for several decades. BandAids cost more; so does bread, insurance, Dr. visits, and everything else. This was a momentary blip or one could call it a minirally in a dollar bear market.
See the film "I.O.U.S.A."
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3127 points
EthanR answered 3 months ago …
Chuck, don't forget this is an election year. Do you really trust any of the numbers right now? If you want a feel for how the economy is doing, all you have to do (granted it's subjective, but it's fairly potent) is walk around your local mall a few different days and look at all the empty stores. Then go to a few restaurants, especially during the week, and see how they are faring. It's amazing to me how the media was screaming about people starving to death when gasoline hit $4.00, but since it's backed down to $3.40-3.70 (depending on where you live), suddenly everyone got well. I don't buy it.
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951 points
Grudun answered 3 months ago …
Also don't forget that the GDP number is not adjusted for inflation. If you adjust for real inflation the number is either insignificant or negative. Everything costs more so if you are paying 5% more for everything you are buying(food and gas) and the economy expanded only 3% it isn't keeping up.
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larryat36 answered 3 months ago …
Not one bit. Although the number looks impressive on the surface, dig a little deeper and find out where that move came from. Moastly commercial aircraft pushed by our improving dollar but affecting only a tiny portion of the total economy
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