Thursday, October 29, 2009

I've got news for you hotshots at Morgan Stanley and Goldman Sachs .. the recession is over when my clients are not too petrified to buy

Recession unofficially ends as economy grows 3.5 percent

unicorn.jpgWASHINGTON (Reuters) - The U.S. economy grew in the third quarter for the first time in a year, beating market expectations, as consumer spending and new home-building rebounded, signaling the end of the worst recession in 70 years.

The Commerce Department, in its first estimate of third-quarter gross domestic product on Thursday, said the economy grew at a 3.5 percent annual rate, the fastest pace since the third quarter of 2007, after contracting 0.7 percent in the April-June period.

The growth pace in GDP, which measures total goods and services output within U.S. borders, was above market expectations for a 3.3 percent rate. The economy last grew in the second quarter of 2008.

"Better than expected GDP is confirming that the Great Recession has ended," said Kevin Flanagan, fixed-income strategist for Global Wealth Management at Morgan Stanley in Purchase, New York.

"The question going forward is, is this more of a statistical recovery or are we going to get some meaningful momentum on a sustained basis."

U.S. stock index futures prices rose after the economic data. The dollar rose against the yen, and U.S. government debt prices extended their decline on the better-than-expected reports.

Recessions in the United States are dated by the National Bureau of Economic Research and the private-sector group often takes months to make determinations. The economy slipped into recession at the end of 2007 and has been in the worst downturn since the Great Depression of the 1930s.
I don't know about the rest of you, but this kind of news merely enforces the idea that these people have concocted measurements of imaginary benefit.

I see NO SIGN out here that this is over, or even significantly recovered. The only difference I see compared to one year ago is that there are SOME clients who can actually get approved 60 month leases of business or research capital equipment, but there has been this year ONLY ONE who is not too afraid of the future to do so.

How about the rest of you?

To me this recovery is the square root of minus one

1 comment:

Anonymous said...

It's amazing to me that anyone would claim we've pulled out of the recession when unemployment soars and all we've seen is government money prop up banking and wall street. In fact all the cash for clunker, cash for appliances, cash for houses, that is going on is just creating another series of bubbles. And given the current economic climate those bubbles won't last. Greed will overwhelm them and they will burst leaving yet another huge mess for gov to sweep in and say, "Let me save you."