But both sides were reading too much into the report, which will be revised twice before the end of the year, said Bernard Baumohl, chief global economist for the Economic Outlook Group.
“It’s going to be sort of the GDP mouse that roared,” he said. “In the final analysis, what we’ve got is a recovery that continues, but at an agonizingly slow pace.”
Recovery that continues? Really?
Via the Daily Capitalist:
I am sure all this “good” news was merely a coincidence. While government spending does count as “spending” it is not the same kind of spending that businesses and consumers do. Government creates nothing really. While roads and bridges and other infrastructure can be good for the economy, my sense is that this current spending isn’t that. According to CMI 30% of government spending was defense related. The rest, mostly transfer payments (welfare, social services, and other entitlements), comes from money we private citizens would have spent on productive things or from funds borrowed which will never be repaid but the interest payments will become a bigger drag on the economy and our descendants.
Here’s the data.
The private sector isn’t looking too good…