GDP Shows Surprise Drop for US in Fourth Quarter
The U.S. economy posted a stunning drop of 0.1 percent in the fourth quarter, defying expectations for slow growth and possibly providing incentive for more Federal Reserve stimulus.
The economy shrank from October through December for the first time since the recession ended, hurt by the biggest cut in defense spending in 40 years, fewer exports and sluggish growth in company stockpiles.
The Commerce Department said Wednesday that the economy contracted at an annual rate of 0.1 percent in the fourth quarter. That's a sharp slowdown from the 3.1 percent growth rate in the July-September quarter.
And meanwhile, we are keeping on doing the same thing that put us here. From Reuters:
Fed keeps stimulus in place as economy “paused”
The Federal Reserve on Wednesday left in place its monthly $85 billion bond-buying stimulus plan, saying economic growth had stalled but indicating the pullback was likely temporary.
Describing the nation's job market as continuing its modest pace of improvement, the Fed repeated a pledge to keep purchasing securities until the outlook for employment “improves substantially.”
They need to cut regulations and taxes — get American business moving again. The artificially low interest rates are there to make the service on our national debt cheaper.
We are so screwed…Posted by DaveH at January 30, 2013 01:06 PM