Economy weakest in 3 years

Bustem' Down

Give Peas a Chance
CNNGmoney said:
Gross domestic product grew at only a 1.6% rate in third quarter, down from 2.6% in the second.

NEW YORK (CNNMoney.com) -- Economic growth slowed to the weakest pace in more than three years in the third quarter, as the government's main gauge of the strength of the U.S. economy came in much lower than analysts had forecast.

Gross domestic product, the broadest measure of the nation's economy, grew at a annual 1.6 percent rate in the quarter, the Commerce Department said, down from the 2.6 percent rate in the second quarter.

http://money.cnn.com/2006/10/27/news/economy/gdp/index.htm?cnn=yes

Ok, I'm not good with economics so some explanation would be helpful. How is it that the DOW is booming, but the GDP is so low?
 

punjabigyrl

Active Member
Economy has been going doooowwwnnn and these number will keep dropping. Thanks to the $3 dollar gas....and other various factors. I can't think why this administration can be sooo blind about it and claim everything is fine when in reality "we're in BIG whole".
 

dck4shrt

New Member
Bustem' Down said:
http://money.cnn.com/2006/10/27/news/economy/gdp/index.htm?cnn=yes

Ok, I'm not good with economics so some explanation would be helpful. How is it that the DOW is booming, but the GDP is so low?

GDP is down primarily because of the cool down in the housing market. Economy has been predicted to slow down overall (hence the rise in interest rates). The market isn't necessarily worried about an economic slow down itself, just the rate of that slow down. We're looking for a soft landing.

Market is up because of the cool down in the housing market (speculation money has to go somewhere), a drop in oil prices, and decent corporate earnings. Midterm elections are the next hurdle for the market imo.
 

Bustem' Down

Give Peas a Chance
dck4shrt said:
GDP is down primarily because of the cool down in the housing market. Economy has been predicted to slow down overall (hence the rise in interest rates). The market isn't necessarily worried about an economic slow down itself, just the rate of that slow down. We're looking for a soft landing.

Market is up because of the cool down in the housing market (speculation money has to go somewhere), a drop in oil prices, and decent corporate earnings. Midterm elections are the next hurdle for the market imo.

So Market and GDP don't nessecarily follow each other? I always thought they were closely tied together.


I think I should take a couple economics courses at a community college.
 

Sweet 16

^^8^^
punjabigyrl said:
Economy has been going doooowwwnnn and these number will keep dropping. Thanks to the $3 dollar gas....and other various factors. I can't think why this administration can be sooo blind about it and claim everything is fine when in reality "we're in BIG whole".
$3 gas? Since when? Dow is setting records every day, unemployment is under 5%, interest rates are holding steady, corporate profits are through the roof (don't forget, they employ lots of people), oil and gas prices are plummeting, consumer spending is up. Yep, it really looks like the economy is tanking. Economies fluctuate. My guess is that the doom-and-gloom crowd has run out of things to complain about, except Iraq, thus they have no platform this election season. :jameo: :jameo:
 

pingrr

Well-Known Member
Sweet 16 said:
$3 gas? Since when? Dow is setting records every day, unemployment is under 5%, interest rates are holding steady, corporate profits are through the roof (don't forget, they employ lots of people), oil and gas prices are plummeting, consumer spending is up. Yep, it really looks like the economy is tanking. Economies fluctuate. My guess is that the doom-and-gloom crowd has run out of things to complain about, except Iraq, thus they have no platform this election season. :jameo: :jameo:

Yes 3 a gallon. Gas prices are plummeting due to it being winter. Gas prices always go down in the winter and rise in the summer. There is less demand for gas in the winter. That's why they are dropping now.

The US has an oil based economy. So when gas prices rise. The price of everything else goes up. Which causes inflation and cuts into consumer spending. Since when is that good for the economy.
 

Bustem' Down

Give Peas a Chance
pingrr said:
Yes 3 a gallon. Gas prices are plummeting due to it being winter. Gas prices always go down in the winter and rise in the summer. There is less demand for gas in the winter. That's why they are dropping now.

The US has an oil based economy. So when gas prices rise. The price of everything else goes up. Which causes inflation and cuts into consumer spending. Since when is that good for the economy.
That sounded somewhat intellegent pingrr. Can we get some verification on that??
 

PsyOps

Pixelated
From the original article...

Some facts conveniently left out of this discussion thus far...

While the slower than expected economic growth isn't a positive, some economists argued the economy appears poised to bounce back in the current quarter HELPED BY LOWER ENERGY PRICES

So, nothing to do with gas prices.

Moreover, the slower growth, and a price reading in the report that showed less inflation pressures than expected...

Inflation's not a factor...

Weaker growth in the quarter was attributable in part to a rising trade gap, which subtracts from GDP, as well as a slump in the nation's housing market.

Still nothing to do with gas prices.

The news was not well timed for the Bush administration as Republicans try to hold onto Congress

First of all, this is still growth. Secondly, it's only one key indicator of the overall economy. Lastly, a single quarter does not show a trend. As much as the left is loving this windfall of politcal advantage, when the GDP swings higher, they will be silent.
 
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pingrr

Well-Known Member
PsyOps said:
Quote:
While the slower than expected economic growth isn't a positive, some economists argued the economy appears poised to bounce back in the current quarter HELPED BY LOWER ENERGY PRICES


So, nothing to do with gas prices

Gas prices are high when oil prices are high. Energy prices go up when oil prices are high. It's all relative.

If gas prices are on the rise so are energy prices.
The price of oil is a huge factor in the price of energy.

I will rephrase my statement from the previous post. High Oil prices are bad for the economy.
 
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dck4shrt

New Member
Bustem' Down said:
So Market and GDP don't nessecarily follow each other? I always thought they were closely tied together.


I think I should take a couple economics courses at a community college.

The market is generally a leading indicator of the economy, but it can be an unreliable indicator at times. Some argue that using the market as a leading indicator is unreliable because the engine driving the economy is not constant and that investors guess incorrectly as to how that economic engine is shifting over time. An example would be that the market predicted the effect that technology would have on the economy in the late '90s. The problem was that the market overshot this prediction because investors guessed incorrectly as to how much of an impact it would have (they thought it was going to change the world overnight, when in fact, it's taken until about now to finally catch back up).

If the market goes up, it usually indicates that the economy is going to get better. The cause and effect of such a relationship is very debatable (that's basically what the bulls and bears talk about on CNBC all day long).
 

Mikeinsmd

New Member
punjabigyrl said:
Economy has been going doooowwwnnn and these number will keep dropping. Thanks to the $3 dollar gas....and other various factors. I can't think why this administration can be sooo blind about it and claim everything is fine when in reality "we're in BIG whole".
Some of you people are really effing STUPID!!!

I was on the roof of the Newseum in DC today and counted 15 tower cranes and that was just looking northwest. Do you have any effing idea what that means???

It means we are BOOMING!!! When those shells are done, the tenant portion will start keeping workers busy over the next 5 yrs minimum.

Our union has 7500 members and we currently have over 9000 on the books which means there are almost 3000 travelers. FULL EMPLOYMENT!!!!

We are booked solid for the next 5 years with work.

So dum dum..... tell me about this big "whole" we're in. BTW Einstein, it's spelled "hole" but I expect no more from you. :duh:

The only holes around are in your head and in the ground where new buildings are coming up.
 
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Mikeinsmd

New Member
Bustem' Down said:
http://money.cnn.com/2006/10/27/news/economy/gdp/index.htm?cnn=yes

Ok, I'm not good with economics so some explanation would be helpful. How is it that the DOW is booming, but the GDP is so low?
It's not down Bustem. It's up and growing. Read your quote.... it said:

NEW YORK (CNNMoney.com) -- Economic growth slowed to the weakest pace in more than three years in the third quarter, as the government's main gauge of the strength of the U.S. economy came in much lower than analysts had forecast.

Gross domestic product, the broadest measure of the nation's economy, grew at a annual 1.6 percent rate in the quarter, the Commerce Department said, down from the 2.6 percent rate in the second quarter.
I highlighted the key words. What the quote says is that the rate in which the economy is GROWING slowed by 1% in one quarter. It has been growing for the last 4-6 years.

Pingrr and punjagrl are dolts who don't have a clue.

And consider your source.... CNN. Liberal spin doctors.
 
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Mikeinsmd

New Member
PsyOps said:
Some facts conveniently left out of this discussion thus far...
So, nothing to do with gas prices.
Inflation's not a factor...
Still nothing to do with gas prices.
First of all, this is still growth. Secondly, it's only one key indicator of the overall economy. Lastly, a single quarter does not show a trend. As much as the left is loving this windfall of politcal advantage, when the GDP swings higher, they will be silent.
Ahhhhhhh..... a fresh influx of intelligence!! :high5:
 

LordStanley

I know nothing
pingrr said:
Yes 3 a gallon. Gas prices are plummeting due to it being winter. Gas prices always go down in the winter and rise in the summer. There is less demand for gas in the winter. That's why they are dropping now.

:bs:


The prices change because the ingredients in the fuel changes in the winter

"Summer gasoline is given a lower volatility to avoid vapor lock and minimize evaporative losses. Winter gasoline (both conventional and oxygenated) is given a higher volatility to facilitate starting and warmup. The compositional changes required for the shift from summer gasoline to winter gasoline decrease the gasoline's energy content."
 
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