News US economy grows 3.7 per cent in Q2, beats expectations. Best growth in the world, thanks Obama.

Discussion in 'The Howard Stern Show' started by Ving, Aug 31, 2015.

  1. Ving

    Ving Well-Known Member

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    US economy grows 3.7 per cent in Q2, beats expectations
    Martin Crutsinger Washington Last Updated: August 28, 2015 | 00:00 IST
    [​IMG]
    Representational Photo (Reuters)


    The US economy staged a far bigger rebound last quarter than first thought, outpacing the rest of the developed world and bolstering confidence that it will remain sturdy in coming months despite global headwinds .

    The economy as measured by gross domestic product expanded at an annual rate of 3.7 per cent in the April-June quarter, the Commerce Department reported on Thursday.

    That's more than a percentage point greater than the initial 2.3 per cent estimate and a sharp upgrade from the anemic 0.6 per cent advance during the January-March quarter.

    President Barack Obama took note of the good GDP report, saying it showed America remains "an anchor of global strength and stability" with an economic recovery that has been faster and stronger than most other nations.

    "It's important to remember that strength. There's been a lot of reports in the news, stock markets swinging, worries about China and about Europe ," Obama said during a tour of New Orleans to see rebuilding efforts since Hurricane Katrina 10 years ago.

    To be sure, the GDP report provides a backward look at the US economy.

    Since the spring, it has been hit with deepening concerns about a slowdown in China and recent turbulence in global financial markets. It remains unclear how the US will fare in the months ahead if developments abroad deteriorate.

    The robust second-quarter numbers, however, indicate a level of growth unmatched by the rest of the developed world and a solid footing heading into the second half of the year.

    "The US economy entered the current market turbulence with momentum, which will help it to shrug off the drag from China and other developing economies," said Diane Swonk, chief economist at Mesirow Financial.

    In contrast, Japan - the world's No. 3 economy - shrank at an annual pace of 1.6 per cent in the second quarter. Germany eked out 0.4 per cent growth, while the United Kingdom expanded at a modest 0.7 per cent rate. France didn't grow at all.

    The US economy will probably cool slightly in the third quarter, but economists still expect solid growth that should keep fueling jobs and spending.

    Paul Ashworth, chief US economist at Capital Economics, projects GDP growth of 2.5 per cent in the current July-September quarter.

    "The economy regained a massive amount of momentum in the second quarter and all the evidence from July's activity and employment data suggests that momentum continued into the third quarter," Ashworth said in a note to clients.

    Mark Zandi, chief economist at Moody's Analytics, is forecasting the economy to grow around 2.8 per cent in third quarter and accelerate to a 3.5 per cent annual rate in the October-December period. But he said that is based on an expectation that the recent market turbulence will not inflict long-lasting damage on the economy.

    "My forecast rests on the assumption that this is a garden variety market correction, with stock prices dropping by 10 per cent from their recent high," Zandi said. "If we get a bigger decline of 20 per cent, then that will hurt consumption and housing, and we will not get the job growth we are expecting."

    The revision for second-quarter growth was broad-based, reflecting more robust spending by consumers, businesses and government.

    Consumer spending grew at annual rate of 3.1 per cent, up from a 1.8 per cent growth rate in the first quarter.

    Business investment in structures and equipment was revised higher to show growth of 3.2 per cent instead of a decline. Housing construction jumped 7.8 per cent, up from an initial estimate of 6.6 percent growth. Businesses spent more to restock their store shelves as well.

    Also fueling growth were strong gains in state and local government spending, largely due to greater public construction outlays.

    US stock markets shot up Thursday after the GDP report and a strong day across global financial markets. The Dow Jones industrial average closed up 369 points, following a surge Wednesday when stocks rallied to snap a six-day losing streak that saw the Dow tumble about 1,900 points.

    Before the recent financial market turmoil, many economists had assumed that signs of an improving US economy would lead the Fed to begin raising its key short-term rate at its September 16-17 meeting. Now many analysts say a September rate hike is probably off the table, at least for now.

    "With the economy gaining strength... and labor markets marking further progress, the Fed should feel "compelled" to raise interest rates this year," said Sal Guatieri, senior economist at BMO Capital Markets. "Whether it moves in September will largely hinge on whether global financial markets settle down in the weeks ahead."

    Analysts cautioned that there could be more turbulence ahead, in part because of unsettled conditions in China. Beijing has devalued its currency and taken other steps to address a major slowdown in its economy, the world's second-largest and a major global growth engine.

    (Associated Press)
     
    Last edited: Aug 31, 2015
  2. HowieHasBeen

    HowieHasBeen VIP Extreme Gold

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  3. Metalheavy19

    Metalheavy19 Well-Known Member

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    I know they are building like crazy here in central Fl. Of course they were doing that in 2008 too. I think we'll be okay.
     
  4. John Coktoaston

    John Coktoaston Well-Known Member

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    Cleaning up and rebuilding after all the rioting this year surely added some grease to the gears of the economy :cash:
     
  5. Robert Higgins

    Robert Higgins Well-Known Member VIP

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  6. 922Wine

    922Wine Well-Known Member

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    Pretty much the type of "fact-based" responses we've come to expect from the right. I mean why bother with an actual link featuring actual facts to counter this news, am I right?
     
  7. Tipsey Russell

    Tipsey Russell VIP Extreme Gold

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    When I was a kid the japs were gonna own us

    Then the chicks was gonna own us

    Now I'm no economist type but these gooks are all sizzle and no substance



    Sizzle
    Funny word
     
  8. 922Wine

    922Wine Well-Known Member

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    [QUOTE="Tipsey Russell, post: 9991599, member: 7918"

    Then the chicks was gonna own us[/QUOTE]

    If you divorce them, they pretty much do.
     
  9. StillAFan

    StillAFan Mult

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    Of course the right would have you believe we are on the precipice of depression. Were you better off in 2008?
     
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  10. Lester

    Lester Well-Known Member

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    Why are there so many homeless people then?
     
  11. suckemnuckledus

    suckemnuckledus Well-Known Member

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    :weeed::weeed::weeed::weeed:My house in San Francisco has gone up 10 zillion percent in the past few days!!
     
  12. EvolvedMarbles

    EvolvedMarbles Well-Known Member

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    There's 11% fewer since 2007 according to studies done by the HUD. And the numbers of homeless w/some level of shelter/transitional housing has increased.
     
  13. Lester

    Lester Well-Known Member

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    Not in Colorado. We have a real issue here.
     
  14. ltd86

    ltd86 Racist Banned User

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    [​IMG]




    P.S.
    Reagan averaged the GDP growth you're jerking off to today over the course of his entire presidency :jj: If you count the years following the recession Reagan inherited ended, Reagan actually averaged 4.9% GDP growth.
     
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  15. scoobyla

    scoobyla Well-Known Member

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    because they dont have homes
     
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  16. PI Nate

    PI Nate Disenfranchised since 1984... Gold

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    So the only reason there are fewer homeless is because taxpayers have paid for more housing?

    Thanks obama.
     
  17. EvolvedMarbles

    EvolvedMarbles Well-Known Member

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    It's the tax exempt faith-based and charity-driven orgs that are covering it.
     
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  18. PI Nate

    PI Nate Disenfranchised since 1984... Gold

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    Okaaaay, so any gains were still subsidized. Correct?
     
  19. MadWoman777

    MadWoman777 Well-Known Member

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    This is an admittedly non-political, non-researched question, but I'm just honestly curious: how can the economy be doing so well when wages (for the 99%) have remained stagnant and prices for everything from utilities and food to housing, health insurance and transportation have risen unchecked?

    I found a paystub from 2008 -- I discovered that even though I'm making 10% more now (different company), I'm netting less. I used to pay about $100 a month for my portion of health coverage, and now it's closing in on $400 -- and I work for a global financial institution that boasts billiions in profits every quarter (even after paying billions in government fines).

    I'm guessing the answer is "voracious, immoral corporate greed," but is there more to it?
     
  20. Divorce Chicken

    Divorce Chicken white punk on dope VIP

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    CrucifiedAGT and ltd86 like this.