Q3 GDP DROPS 0.5%

We are so statistic driven. OK, now that we have a recorded drop in the Q3 GDP of 0.5% will everyone agree we are in a recession that could get worse. My shock is that this was inevitable last year. You can't stop building homes and not affect the economy. I remember arguing with my stock broker last year, when selling retirement funds and going to an all cash position. He said, "you can't time the market Jeff!" I said, I can use my brain. Why walk through the big hole when I could walk around it????
Just My Opinion...Jeff Cameron

Economy Drops 0.5%, Worst Fall in 7 Years
AP 25 Nov 2008 08:50 AM ET
The economy took a tumble in the summer that was worse than first thought as American consumers throttled back their spending by the most in 28 years, further proof the country is almost certainly in the throes of a painful recession.
The updated reading on the economy's performance, released Tuesday by the Commerce Department, showed gross domestic product shrank at a 0.5 percent annual rate in the July-September quarter.
That was weaker than the 0.3 percent rate of decline first estimated a month ago, and 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.
Read the rest of the story: http://www.cnbc.com/id/27905989

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

4TH QUARTER GDP GROWS AT .6% ANNUAL GROWTH RATE

The US Economy stayed out of recession in the 4th quarter of 2007. Mostly due to a 6.5% growth rate of exports. The consumer was out in fashion, with a 2.3% growth rate on consumer purchases. Business cut back and lowered inventories by 1.7%, which is what really hurt GDP.

Economy Grows at 0.6 Percent Pace
By JEANNINE AVERSA,
AP
Posted: 2008-03-27 12:28:32
WASHINGTON (March 27) - The economy nearly sputtered out at the end of the year and is probably faring even worse now amid continuing housing, credit and financial crises. The Commerce Department reported Thursday that gross domestic product increased at a feeble 0.6 percent annual rate in the October-to-December quarter. The reading - unchanged from a previous estimate a month ago - provided stark evidence of just how much the economy has weakened. In the prior quarter, the economy clocked in at a sizzling 4.9 percent growth rate. The gross domestic product (GDP) measures the value of all goods and services produced in the United States and is the best barometer of the country's economic health. Many economists say they believe growth in the current January-to-March quarter will be even weaker than the 0.6 percent figure of the previous quarter. A growing number also say the economy may actually be shrinking now. Under one rough rule, the economy needs to contract for six straight months to be considered in a recession. The government will release its estimate for first-quarter GDP in late April.
real the full report: http://money.aol.com/news/articles/_a/economy-grows-at-06-percent-pace/20080327090809990001