GDP DROPS BY .3%, LESS THAN .5% EXPECTED

Finally, it is here. The recession. We have been hearing about it for a year or so and it finally arrived. The good thing about the arrival is that the departure is now on the horizon. We all knew it was coming. Now, let's not be shocked, let's push through it.
GDP dropped by .3% for the 3rd quarter, less than what economist forecast of .5% drop. As this real estate market continues to recover, it will help us pull out of the recession. Remember, home sales here in the valley are up 102% when comparing September 2008 to September 2007. These are signs of a turn around. Oh, how about 2 of my listings getting multiple offers and selling over list price this week. Priced slightly aggressive, they attracted multiple offers and will sell higher than the last sales. How is that for a pricing strategy???



Signs of Recession: Growth Shrinks, Consumers Retreat

AP 30 Oct 2008 09:43 AM ET
The economy jolted into reverse during the third quarter as consumers cut back on their spending by the biggest amount in 28 years, the strongest signal yet the country has slipped into recession.
The broadest barometer of the nation's economic health, gross domestic product, shrank at a 0.3 percent annual rate in the July-September quarter, the Commerce Department reported Thursday.
It marked the worst showing since the economy contracted at a 1.4 percent pace in the third quarter of 2001, when the nation was suffering through its last recession.
The latest GDP reading marked a rapid loss of traction for the economy, which logged growth of 2.8 percent in the second quarter, and is sure to buttress the belief of many economists that the nation is in the throes of a painful downturn.
The deterioration reflected a sharp retrenchment by consumers, whose spending accounts for the largest chunk of national economic activity.
Consumers ratcheted back their spending at a 3.1 percent pace in the third quarter, the most since the second quarter of 1980, when the country was in the grip of recession.
GDP measures the value of all goods and services produced within the United States and is the broadest barometer of the country's economic health.
The rest of the Story: http://www.cnbc.com/id/27453297