This is decent report if it is taken out of context; the growth consists mainly of temporary stimulus factors that are intended to buy time until the private sector comes out of recession and starts growing on its own, which definitely has not happened yet.

There are several factors that cannot be depended on to continue:

• By far the highest level of government spending as a percentage of GDP since 1945
• Cash for clunkers
• Special tax break for home buyers

All of these produce higher numbers, as auto sales alone contributed about half of the growth. But none of them can be depended on to continue.

At the same time, we had a slight improvement in inventory figures. When the economy has fallen as far the US has in the last two years, even a small adjustment in inventories can produce an outsized change in growth.

GDP is the cumulative measure of all goods and services produced in the US. Inventories have been cut to the Depression levels throughout the economy. Inventories are no longer falling, which is certainly a good thing. But until sales pick up and maintain a steady pace, there will be no large-scale replenishing of inventories.

There can be no real recovery until we have a self-sustaining private sector

We can have GDP growth that is just above water, but an economy can remain flat for years. It is not technically a recession - but a long period of anemic growth can result in very high unemployment that becomes a chronic problem and a permanent part of life.

The GDP of the US is around 14 trillion dollars a year. (1)

So a quarter's worth of the GDP is ~ 3.5 trillion dollars.

The 3rd quarter GDP rose 3.5%, or roughly $133 Billion dollars.

In other words, the GDP grew by a small fraction of the money we borrowed over the same period.

Pardon me if I don't think it's time to celebrate.....

Matt

1- Flag Counter United States

This attempt at witty repartee might work if was a devastating critique that revealed the truth.

In fact - your satire falls flat. This growth really is based primarily on one time factors.

And the left are hardly in a position to be clucking over this. Unemployment is very high and while this number is a relief, it is certainly not strong or impressive.

I would save the witty ripostes for much better numbers if I were you.

That is true

They are real enough. The question is whether they are self-sustaining. So in that sense there is an artificiality to them.

As I understand it, unemployment isn't the best indicator on the current health of the economy, as it usually lags behind.

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Stimulus measures in the form of massive government spending are intended to help light the fire under the real economy while making life more bearable during the waiting period.

It is most certainly not intended to be the main engine for growth in a capitalist economy.

There are many problems with the frenized spending binge that is currently going on in Washington. One of them is that the government is now crowding out the private sector.

That may bring self-satisfied smiles to the faces of left-wing ideologues. But it is entirely negative for the economy and for job creation.

At the same time, we are looking at a mammoth new gorgon of a spending program to end all spending programs: Obamacare.

All of this spending will simply continue to keep the real economy from full recovery.

Yes, by about four to six months.

But then it takes off out of the gate. That looks extremely unlikely now. But we will know soon enough.

Typical right-winger. Happy about deficeit spending, knowing full well it will cripple us. Why do so many righties get a rush from destroying our economy?

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"I think—tide turning—see, as I remember—I was raised in the desert, but tides kind of—it's easy to see a tide turn—did I say those words?"—Washington, D.C., June 14, 2006

"[T]he illiteracy level of our children are appalling."—Washington, D.C., Jan. 23, 2004

*chuckle*

How many months (years) are we going to have put up with this?

Obama and the Dems are setting records for spending that eclipse anything seen in the United States since the war build-up in 1942-45. There is no comparison with anything before or since.

And far more importantly: they are doing absolutely nothing at all to address the problem, while all of their 'policies' (such as they are) are purely destructive for the economy, which will crush growth and produce still higher deficits.

Right wingers indeed.

I would suggest you acknowledge the obvious and unquestionable fact that the left-wing Democrats are in absolute power in this nation. They are spending like drunken men on a spree. The period of grace has expired for blaming their predecessors. It's time to take responsibility, whether they like it or not.

If you are not willing (able?) to face this reality, there may be some difficulty for you in addressing this topic.

Rather basic, you know.....

I was thinking alone the same lines....they sold a years supply of autos because of the cash for clunkers......now I fear everything will be shut down because no one left to buy anything.

Personally, IMO we have not reached the bottom yet.....I suspect a real shit drop soon...Hopefully I am wrong, but I prefer to be safe then sorry.

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Anyone who thinks freedom comes cheap, please put the blindfold on and stand against the wall.

IT IS TIME for Americans to take back the country and start a new government.

Typical left winger. Unable to comprehend what they read. Why do so many lefties not think before they type?

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"To take from one, because it is thought his own industry and that of his father has acquired too much, in order to spare to others who (or whose fathers) have not exercised equal industry and skill, is to violate arbitrarily the first principle of association, "to guarantee to everyone a free exercise of his industry and the fruits acquired by it."

-Thomas Jefferson

The recession is over. The depression begins.

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You forgot about the massive credit card debt that will surely be seeing much greater default rates.

Prepare for the double dip

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