US Economy as Bad as It Feels

by Ryan on January 30, 2013

in Economy,Election 2012,Natural Disasters,Politics

Data was released today indicating that the economy contracted 0.1% in the fourth quarter of 2012.  This signals the first time the economy actually shrank since the second quarter of 2009.  If it shrinks in the first quarter of this year, we’ll be officially in a recession.  Regardless, I don’t trust much out of this administration.  I would not be overly shocked if the fourth quarter GDP figure gets revised up to show growth just in time for the up-coming debt and budget negotiations.  We’ll see — the US economy could actually be as bad as it feels.

The White House immediately blamed Republicans, of course.  Yawn.

What’s one more issue for this White House to demagogue this month — in January alone we’ve had fiscal cliffs, gun control proposals, kabuki Benghazi hearings, another attempt at comprehensive immigration reform, etc.!

I swear this administration has ADHD.  Either that, or with all this noise more people will just stop listening — crisis fatigue will eventually wear out the hardiest of us all.

My hunch is that the contraction was due in part to 1) an already anemic economy, 2) Superstorm Sandy devastating the most populated region of the United States for weeks, and 3) a return to bearish consumer spending attitudes after the November election.

{ 1 trackback }

Yesterday’s Economic Report Should Have Been Released on Groundhog Day | Axis of Right
February 2, 2013 at 4:40 pm

{ 1 comment… read it below or add one }

Tom February 4, 2013 at 6:35 pm

This news doesn’t surprise me at all even though I hoped the new year would bring some positive changes. Now I see there are no good options. I work in real estate in Canada and according to the analyses that I’ve recently read, the outlook for 2013 is more than optimistic as a result of stable economic conditions. However, much depends on the economic situation of our neighbor because the threats such as inflation in the US could put a halt to the positive development of real estate market in both Canada and the US which would consequently be felt all around the world. So clearly the new US administration will face unpredictable challenges if they want to give the economy a boost it needs right now and actually save the investments from abroad.

Reply

Leave a Comment

You can use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Previous post:

Next post: