Economy barely expands in fourth quarter, brighter days ahead

Comments (37)
moxsee wrote:

Start pricing in the sequestration and you have negative GDP.

Feb 28, 2013 9:18am EST  --  Report as abuse
Crash866 wrote:

You voted for this. Hey USAPRAG, Flashrooster and the like let’s hear your spin today!!!

Feb 28, 2013 9:20am EST  --  Report as abuse
Crash866 wrote:

You voted for this. Where are USAPrag, Flashrooster and the like? Give us your spin on this one!!

1. Obama inherited this from Bush so it’s not his fault

2. The Economy is improving. I will be voting for Obama again

Feb 28, 2013 9:28am EST  --  Report as abuse
Crash866 wrote:

“Economy expands at weakest pace since 2011″

That was the headline until Reuters changed it to something a little more shall we say positive. “Economy barely expands in fourth quarter” Notice how the word “weakest” which is a fact is removed???

Feb 28, 2013 9:30am EST  --  Report as abuse
Crash866 wrote:

moxsee
and they knew the sequester was coming… they created it…nice leadership…

Feb 28, 2013 9:32am EST  --  Report as abuse
Handbook wrote:

The government is staffed by a bunch of bozos. QE has done nothing to stimulate growth. That’s because the money is being misalocated. Too many people being paid not to work. Too many government employees being paid too much to do jobs not needed. Too many tax loopholes. Too much special interest legislation. Shall I gone on! The list is very, very long.

Feb 28, 2013 9:36am EST  --  Report as abuse
Crash866 wrote:

The headline was “Economy expands at weakest pace since 2011″. It’s now
“Economy barely expands in fourth quarter”.

Notice how the word “weakest” was removed….both are true but which one sounds worse and which one puts a not so bad spin by saying it did expand??

Feb 28, 2013 9:40am EST  --  Report as abuse
R_Holliday wrote:

but but but, we spent the stimulus money and the big smart politician in the white house said if we spent more money we don’t have this wouldn’t happen!

Feb 28, 2013 9:52am EST  --  Report as abuse
reality-again wrote:

“Still, much of the weakness came from a slowdown in inventory accumulation and a sharp drop in military spending. These factors are expected to reverse in the first quarter.”

Yeah, sure they will…

Feb 28, 2013 10:14am EST  --  Report as abuse
USAPragmatist wrote:

Pretty simple, seeing the effects of premature austerity. Same thing happened to many European countries, but thankfully not to the same extent. No sensible person thinks that some austerity is not going to be necessary, the question is timing and the amount of austerity.

Feb 28, 2013 10:19am EST  --  Report as abuse
Crash866 wrote:

USAPragmatist
Austerity in the 4th Q of 2012 caused this? How about the premature increased taxes we are all now paying…had nothing to do with it eh?

Feb 28, 2013 10:28am EST  --  Report as abuse
Crash866 wrote:

reality-again
“Click your heels three times”…”there’s no place like home”
Check back after Q1 2013

Feb 28, 2013 10:30am EST  --  Report as abuse
Crash866 wrote:

USAPragmatist
Please stop comparing us to Europe

Feb 28, 2013 10:31am EST  --  Report as abuse
John1980 wrote:

Without the FED welfare program (QE 1,2,3) we would have been in a double dip recession. Without Government spending increasing to almost half of GDP, we would be in a depression. We live in a socialist economy. Without ever increasing Government spending (and debt), there is no way the gravy train can continue. That is why Obama is fighting even the slightest of cuts to spending increases with such fear and scare tactics.

Feb 28, 2013 10:34am EST  --  Report as abuse
Harry079 wrote:

Yesterday the National Debt increased by $9 billion. Since the President signed the bill that suspended the debt limit until May 15 the Treasury has issued over a $150 billion in new debt.

Most of the new debt that is being issued the last few weeks is going towards paying income tax refunds. So you all should take comfort that the refund check you are getting is borrowed money that the Treasury has to pay interest on.

Feb 28, 2013 10:56am EST  --  Report as abuse
divinargant wrote:

Just enough to cross over the flatline. Interesting, though not at all surprising.

Feb 28, 2013 11:01am EST  --  Report as abuse
Crash866 wrote:

John1980
First thing you should do when you are in hole is stop digging. Increasing spending and the debit it not the answer. It will just increase the pain. It’s time to take the bad medicine before it’s gone to far and can’t be fixed. By your logic your are admitting all that spending has not made things any better so spending more is not the answer. End result…we threw momney at the problem and it didn’t fix it. What it did do is make the hole bigger and harder to get out of. The government can’t fix the economy and they should stop trying so hard to do so because it’s only going to make things worse down the road.

Feb 28, 2013 11:30am EST  --  Report as abuse
Isay wrote:

Wasn’t Christmas in the 4th Q?? Did no one buy anything?? I’m confused….

Feb 28, 2013 11:36am EST  --  Report as abuse
reality-again wrote:

@Crash866

FYI, clicking your heels is outdated, and many doubt it ever worked.
These days, economists have come up with a more scientific approach called “Optimism”, according to which all the Fed need to do is print little greenish pieces of paper that say “in god we trust”, and exchange them with the US government against fewer but somehow larger pieces of paper that say IOU (tongue in cheek, of course).
Although there’s no sign this method is working, both the Fed, the government and many analysts and journalists believe it’s going to stimulate the economy and put it back on track before we all have to pay much higher taxes…
As for 0.1% growth, it is a full blown retraction considering the fact that the US population is growing at a pace that’s higher by an order of magnitude, which means the average American keeps getting poorer – quarter after quarter, dollar after dollar (printed by the Fed).

But frankly, who cares about the average American, and who cares about the real US economy when stock prices keep going up?
That is so far…

Feb 28, 2013 11:44am EST  --  Report as abuse
Crash866 wrote:

reality-again
We agree, the hole is bigger now. QE has help the stock market but that’s about it. Ironic though that QE didn’t work and did far more damage than clicking your heels…

Feb 28, 2013 12:07pm EST  --  Report as abuse
YoramYasurm wrote:

Good news and bad news

Feb 28, 2013 12:28pm EST  --  Report as abuse
r.u.crazy wrote:

“Brighter days ahead”, only if the sun goes super nova. The world is heading straight into a severe depression and the media continues to live in denial. The government and media have lost all credibility.

Feb 28, 2013 12:28pm EST  --  Report as abuse
jimfurl179 wrote:

I guess we’re just ignoring that almost all US retailers have seen sales drops in January and expecting it to continue and have issued 1st Quarter warnings. They say it’s because of increased payroll and income taxes. Since this economy is 70% consumption, drops in retail consumption is NOT indicative of “brighter days ahead”.

Feb 28, 2013 12:33pm EST  --  Report as abuse
Harry079 wrote:

Crash866 wrote: “QE has help the stock market but that’s about it”

Your correct about QE helping the equity markets because that is what it was designed to do. But what most people don’t know is how that plan was supposed to work.

With the Fed setting the rate at which banks can borrow money at .25% and pumping billion of dollars a month into Treasuries and Mortgage Backed Securities the Fed believed that Fixed Income investors would be forced by little or negative returns on their money into the higher risk equity markets.

Now after the savings and investments of MILLIONS of retired people have been destroyed by these low interest rates they wonder where that fixed income money went.

Who is buying all these 10 Year Treasury Bonds that are paying less than 2%?

Who benefits from these record low interest rates?

Who is getting cash returns every month buy selling the Fed $40 billion at month Mortgage Backed Securities?

Feb 28, 2013 12:39pm EST  --  Report as abuse
AlaskanDude wrote:

I came to comment how tired I was to read headlines that keep saying the numbers are bad, but things have turned the corner, blah blah blah. Then I read the spun headline was changed from a more accurate one. Pathetic left wing journalism. I guess reuters is trying to be another cnn. Time to dump these guys and continue looking for a centered news source. Bye.

Feb 28, 2013 12:49pm EST  --  Report as abuse
Crash866 wrote:

2nd change to the headline by Reuters. Now they have added “Brighter Days Ahead” to the title. I feel better already. Maybe Reuters got threatened into that change just like Bob Woodward did for his assessment of the sequester? Naw they are will participants to towing the line!!!!

Feb 28, 2013 1:00pm EST  --  Report as abuse

Here are the writers credited with this article:

” Lucia Mutikani, Leah Schnurr, Andrea Ricci, and Tim Ahmann.”

Am I the only one that noticed that Nostradamus was omitted?

Feb 28, 2013 1:38pm EST  --  Report as abuse
ForLoveofUSA wrote:

It’s a bummer when you can’t even trust journalist’s anymore. :(

Feb 28, 2013 1:43pm EST  --  Report as abuse
reality-again wrote:

@Crash866

I’ve noticed the “Brighter Days Ahead” addition as well, and it reminded me of not so long ago, when every bit of negative news was followed or preceded by the adjective “unexpected”, “unexpectedly”, etc., and every positive news was “on track with market predictions”.
Bear in mind that we all want things to improve, but few of us feel there’s anything we can do about it, and we do our best to perceive things as they are.
The media are in a different position: their existence and prosperity depend on advertising dollars whose stream dwindles when businesses get more cautious. But the media can also influence their readers to be more “optimistic” than facts on the ground suggest they should be.
The result is a constant bias of the media towards the “optimistic” paradigm, a bias for which they can hardly be blamed, if one takes into consideration that both reporters, editors and media owners are human.

Feb 28, 2013 2:12pm EST  --  Report as abuse
Crash866 wrote:

reality-again
It’s their job to report the news. Not to spin it positively or negatively.Hated Bush…love Obama

Feb 28, 2013 2:43pm EST  --  Report as abuse
GRRR wrote:

+0.1% (previously -0.1%), adjusted for inflation. +1.0% (previously +0.5%) nominally, however.

Still the largest decline — -22.2% — from cuts in defense spending, and a total government decline in spending at -6.9%. Largest influential factor of Q4-2012′s lower number, compuared to Q3.

This number will rise in the final estimate, as surely as I can see a half-dozen construction cranes on my daily walks.

Feb 28, 2013 3:47pm EST  --  Report as abuse
INTJ wrote:

I’m confused. After a decade of hearing how defense spending needed to be slashed – left-wing politicians had, until 2009, called for as much as a 50% cut – now we’re saying Defense was adding 1.3% to GDP and is a necessary part of the economic engine? One way or the other people.

Feb 28, 2013 3:55pm EST  --  Report as abuse
tmc wrote:

No @Crash866, it’s their job to make money.

Feb 28, 2013 4:00pm EST  --  Report as abuse
buffalogal3 wrote:

Brighter days for whom? Certainly not me…….

Feb 28, 2013 5:09pm EST  --  Report as abuse

Days ahead will not be brighter unless sequester is stopped

Feb 28, 2013 5:19pm EST  --  Report as abuse
buffalogal3 wrote:

Knowing the sequester IS happening is about the ONLY thing that has brightened my day today. It’s about time our wasteful government is forced to cut spending – and hey, they brought this on themselves. I’d like to see MUCH more of the same.

Feb 28, 2013 5:35pm EST  --  Report as abuse
Regulator623 wrote:

Brighter days ahead you say….seems like I have been hearing that alot for the last four years. It’s starting to get a little worn out don’t you think?

Feb 28, 2013 7:54pm EST  --  Report as abuse
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