The productive output of the U.S. economy as a whole is measured by the GDP, and Obama’s Wall Street would have you notice the “healthy state of our economy” just by the positive growth, including spending on homes, cars and other goods. That reported “growth” can goad consumers into spending more money, and it usually does. Now, after a second “official” revision, all of that growth turns out to be conjecture. real GDP as it turns out, boils back to goods and services produced by labor (and property), and that DECREASED AT AN ANNUAL RATE OF 2.9% in the first quarter of 2014. So, you were saying?
This all according to the Bureau of Economic Analysis. So if it’s true, it’s a monstrously NEGATIVE revision. Could this all boil back to investment properties and big money playing games with the values of Real Estate? Is there still a huge housing bubble about to burst, AGAIN?
What if homes that are worth $300,000 now, that were worth $600,000 in 2006 and 2007, are about to be worth $150,000? How about all the people who think they have equity and will be underwater, AGAIN on their mortgages?
RECESSION INBOUND USA:
“A big part of it was non-residential fixed investment. Rather than invest, companies have issued debt and bought back stock. But this does nothing for the economy — it simply blows a bubble in the market. How long before that comes home to roost? Not long now, I suspect.”