The recession is over

[30ashopper]

Economists React: GDP Indicates Road Ahead Still Bumpy - Real Time Economics - WSJ

Although you may not have noticed. Three consecutive quarters of growth. Last quarter was primarily rebuild from the recession, this quarter was marked by consumers finally buying the stuff they had put off - that new pair of shoes, that roof leak, the broken washing machine; With confidence that the worst is over, people went shopping. Even with that, the 3.2% rate is anemic at best, and will likely decline in the next quarter. At these rates, growth will do little to solve the problem of unemployment. Long term credit is still tight, consumers are still burdened with debt, and the savings rate can't get any lower. The long slog forward begins. I'm also guessing that the recovery is already priced into the stock market. Still, it looks to be official, we're in the black on growth. That's worth a little, albeit subdued, celebrating.

 

[Kurt]

Thanks - so it's official because of 3 straight quarters of growth?

 

[30ashopper]

Thanks - so it's official because of 3 straight quarters of growth?

Three quarters is a good, general litmus test. The consensus seems to be we're looking at around 3% average growth for the year.

 

[Bob]

who do you think is propping up the stock market? who is the entire primary/secondary market for mortgages? who is buying our own debt? who is fighting disclosure of it's own largess? who saved the perpetrators of the financial implosion? the recession is over?

 

[30ashopper]

who do you think is propping up the stock market? who is the entire primary/secondary market for mortgages? who is buying our own debt? who is fighting disclosure of it's own largess? who saved the perpetrators of the financial implosion? the recession is over?

Yo preachin' to the choir Bob! I was trying to post some good news for once!

 

[BeachSteelers]

Really it's over. Spending 3 Trillion of money we don't have should have provided a bigger boost than 3%. Add in another 2 Trillion or so due for The Health Scare Scam and we ought to all have a Bentley by now.
Wake Up Folks, we've become slaves for the Gov't whom have incurred a DEBT that can never be repaid.

 

[seacliffes]

economy

Our economy will rebound and grow after every recession as it is part of the natural business cycle. Has been that way since records have been kept dating back to the 19th century.

This recovery is benefiting the corporations and the shareholders like many of us. The problem is jobs. Businesses have adjused to this recession by cutting cost and while product demand has picked up most of the new profits are the result of this cost cutting. That has translated into layoffs.

Yes the rate of new unemployment has dropped but I believe that is more a result of the law of diminishing returns. Basically, all of the expediant layoffs have already occured and only the most essential employees remain.

My former employer, AT&T like most corporations, continues to shift jobs overseas. The IT department that I was a member of and helped build from the 1970s on, has been gutted. These technical high paying jobs are gone for good and probably will never come back.

This same problem is manifested throughout the country. Workers who are finding jobs are finding jobs that are paying far less and may be considered unemployed. The underemployed rate is currently over 18% See this link:

Gallup Daily: U.S. Workforce

I rejoice in our expected recovery, which is natural in the business cycle, but that is little comfort to the USA workforce.