– GDP Shocker: US Economic Growth Crashes To Just 0.1% In Q1 (ZeroHedge, April 30, 2014):
Despite consensus at 1.2% growth QoQ, the “weather” destroyed the fragile stimulus-led economy of the US which managed only a de minimus +0.1% QoQ growth (the lowest since Q1 2011). However, as Steve Liesman noted on the heels of Mark Zandi’s comments “basically ignore this number” – ok then. Spending on Services, however, surged by the most since 2000 – heralded as great news by some talking heads – but is merely a reflection of the surge in healthcare and heating costs (imagine if it had not been cold and if Obamacare hadn’t saved us). As a reminder – this is the growth that is occurring as QE has run its course, as stimulus ends, and as escape velocity nears… if the “weather” can do this much damage to the US economy, should stocks really be trading at the multiple of exuberant future hope that they are?
Oops!
The full breakdown of GDP components:
And here’s what everyone’s favorite economist, who was off only by around 1900%, thought:
We are projecting a weather-impacted +2.0% gain in Q1 real #GDP, a 1.3 point rise in the manufacturing #ISM to 55.0 and +240k on #NFP.
— Joseph A. LaVorgna (@Lavorgnanomics) April 25, 2014
The stock market has nothing to do with the real economy, it has not for a long time. 85% of all transactions are high frequency, where single individuals controlling large funds buy and sell huge amounts stock in the blink of your eye. I call it skim and sell, and it used to be illegal.
As a result, a very few people control the market, and they have bled it nearly empty. Only the wannabe greedy guts look at the high numbers of the stock exchange, and think the recession is over. Every time jobless claims go up, so does the market, that ought to tell them something.
We used to have the NYSE that accepted only the finest stock, the American Stock Exchange for growing enterprises, and the NASDEQ for startups.
They combined the ASE with the NYSE because the money was running short. Now, they even put startups on the NYSE, like twitter……it is insane, but real money is disappearing into the pockets of the real greedy guts.
Now, there is talk to combine the NYSE with the NASDEQ, because, again, they are running out of money.
The market is so rigged, so crooked, nobody should touch it. 15% of the players are real investors, and we don’t know how many of them play on margin…..other people’s money.
0.01%
pathetic. Probably a lie, it is likely to be negative growth.
More on the story the Japs buried, and mainstream media ignores……….the story that cannot be stopped.
http://enenews.com/nhk-officials-admit-it-may-be-impossible-to-stop-leaking-at-fukushima-reactors-will-now-investigate-bottom-of-containment-vessels-for-holes-govt-asking-engineers-from-outside-japan-for-he