Wednesday, August 24, 2011

Much Ado About Nothing (or the anemic GDP Growth)

I don't know why people put so much stake in the preliminary numbers that the government releases; they are never right.

Take GDP for example. Back in May, the Commerce Department announced that 1st quarter GDP grew at 1.8%. People were disappointed. GDP growth slows to 1.8% - But the truth was even worse.

The revised numbers show first quarter growth was an anemic 0.4%. Economic recovery falters dramatically in first half of year - Los Angeles Times. The preliminary numbers for 2nd quarter are 1.3%. Any bets on whether or not this will be revised downward in the months ahead?

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