GDP in 3rd quarter rises to 3.5%; Update: Initial jobless claims steady

posted at 10:12 am on October 29, 2009 by Ed Morrissey

The Commerce Department announced an end to the worst recession in decades today, as the third quarter of 2009 showed an annualized growth rate of 3.5%.   That beat analyst expectations, which had floated around 3.0-3.3%.  Federal government and consumer spending accounted for most of the growth:

The economy grew in the third quarter for the first time in a year as consumer spending and investment in new home-building rebounded, data showed on Thursday, unofficially ending the worst recession in 70 years.

The Commerce Department, in its first estimate of third-quarter gross domestic product, said the economy grew at a 3.5 percent annual rate, the fastest pace since the third quarter of 2007, after contracting 0.7 percent in the April-June period.

The growth pace in GDP, which measures total goods and services output within U.S. borders, was above market expectations for a 3.3 percent rate. The economy last grew in the second quarter of 2008.

That may also be the bad news.  Sales of new homes fell last month, and inventories are not growing.  With the government tax credit expiring, those new-home sales and construction will likely fall off.  The third-quarter growth in that area will almost certainly represent sales shifted from future quarters, which means that the next quarter will get negatively impacted from this growth.

One key indicator continued to move downward significantly, although Reuters only reports it in the final paragraph:

Business investment fell at 2.5 percent pace, with investment nonresidential structures dropping 9 percent, a reflection of ongoing problems in the commercial property market.

In other words, what we had in the third quarter was not long-term growth based on solid investment in business.  We had a flurry of federal spending and consumer behavior predicated on highly temporary government interventions, like Cash for Clunkers and the homebuyer tax credit.  That may be enough to make the administration look good for the next three months, but only for that long if they don’t stimulate real investment instead of using these gimmicky programs.  If we have a double dip recession after these gimmicks end, Barack Obama won’t have George Bush to kick around any longer on the economy.  He’ll own it after this.

Update: In an article headlined by the AP that “First-Time Jobless Claims Drop Less Than Expected,” it turns out that they haven’t dropped hardly at all:

The number of people claiming jobless benefits for the first time dropped less than expected last week, evidence that the labor market remains weak even as the economy is recovering.

The Labor Department said Thursday its tally of newly laid-off workers seeking unemployment insurance fell by 1,000 to a seasonally-adjusted 530,000. Analysts expected a steeper drop to 521,000, according to a survey by Thomson Reuters.

The report comes the same day the Commerce Department said the economy grew at a 3.5 percent pace in the July-September quarter, snapping a streak of four straight quarters of decline. But the economy isn’t growing quickly enough to spur much hiring.

Joblessness is always a lagging indicator, but the downturn in investment in Q3 shows that the “growth” was more gimmick than reality — which is another reason why joblessness continues to increase.


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Gobama!

Bleeds Blue on October 29, 2009 at 10:15 AM

The big question: how’s Christmas spending going to be, with unemployment staying steadily high?

MadisonConservative on October 29, 2009 at 10:15 AM

If we have a double dip recession after these gimmicks end, Barack Obama won’t have George Bush to kick around any longer on the economy. He’ll own it after this.

He will still blame GWB and the libtards at DK & HuffPo will eat it up like the $hit it is.

OmahaConservative on October 29, 2009 at 10:15 AM

Gobama!

Bleeds Blue on October 29, 2009 at 10:15 AM

I’m sorry, I don’t understand. Are you rooting for artificially inflated growth and a continued reduction in business investment?

Doughboy on October 29, 2009 at 10:18 AM

Remember, kiddies! You can’t have “Double Dip” without the “D”s.

ChrisB on October 29, 2009 at 10:18 AM

Seriously, the government gives away bags full of cash to buy stuff and it bumps the GDP up temporarily, darn who would have thunk that?

Watch the next few quarters and see what happens. How low can you go?

Johnnyreb on October 29, 2009 at 10:18 AM

The cycle:

Government spending bumps up the GDP -> but leads to tax increases -> tax increases mean less money in people’s pockets -> which leads to lower spending -> which leads to lower GDP -> Government spends more money and bumps up the GDP -> start the cycle over

SouperConservative on October 29, 2009 at 10:18 AM

yeah. how is it this growth anything other than bullshit when the BLS says we lost 768,000 jobs from July -Sept?

those numbers will be revised next week, but doesn’t anyone think they’ll be revised into positive territory? of course not

gsherin on October 29, 2009 at 10:18 AM

You guys seem awfully grumpy about the good news. It’s almost like you’re rooting against America.

Weird.

crr6 on October 29, 2009 at 10:19 AM

Awesome. See socialism works.
– crr343

angryed on October 29, 2009 at 10:19 AM

Fluke. You’re seeing the result of cash for clunkers. This is NOT a recovery.

Skywise on October 29, 2009 at 10:19 AM

Wait until the other shoe drops… you can’t borrow and spend forever… and you can’t have incentive buying programs forever. These are smoke and mirror numbers.

mankai on October 29, 2009 at 10:19 AM

You guys seem awfully grumpy about the good news. It’s almost like you’re rooting against America.

Weird.

crr6 on October 29, 2009 at 10:19 AM

I’m rooting for reality. Not an emperor with no clothes.

Skywise on October 29, 2009 at 10:20 AM

This is more Kabuki Theatre. Cash for Clunkers accounted for much of this growth. I doubt there was any actual “growth.”

flyfisher on October 29, 2009 at 10:20 AM

You guys seem awfully grumpy about the good news. It’s almost like you’re rooting against America.

Weird.

crr6 on October 29, 2009 at 10:19 AM

No we see that this is Obama’s “Mission Accomplished” moment. We do research and realize the truth unlike moronic libs.

MobileVideoEngineer on October 29, 2009 at 10:20 AM

Let’s not forget that the Bush Tax Cuts expire at the end of ’09 and when they do hold on to yer lug nuts.

thomasaur on October 29, 2009 at 10:21 AM

Motor vehicle output added 1.66 percentage points to the third-quarter change in real GDP after adding 0.19 percentage point to the second-quarter change.

Cash for clunkers.

the_nile on October 29, 2009 at 10:21 AM

crr6 on October 29, 2009 at 10:19 AM

Um, no… we understand economics… there was little to no real wealth creation and a negative impact on business investment.

Floating a fake economy will only make the double-dip even harder.

mankai on October 29, 2009 at 10:21 AM

Remember back when unemployment was 5% GDP was growing 3% a year in 2005? Back then the NY Times, was calling it the worst economy ever. Now unemployment is twice as high and it’s boom time city in the MSM.

angryed on October 29, 2009 at 10:22 AM

The economic growth between July and September indicates that the US has likely exited a recession that first started in December 2007.

Short term spike of consumer spending means recession is over, yet they ignore two quarters of growth in the first half of 2008 and define the beginning of the recession as December 2007. No bias there.

agmartin on October 29, 2009 at 10:22 AM

If we have a double dip recession after these gimmicks end, Barack Obama won’t have George Bush to kick around any longer on the economy. He’ll own it after this.

He owns it now. As much as the POTUS controls the economy, the filthy lying coward in the White House became responsible for the recession on 1/20/09. That GWB was the one who previously had responsibility is irrelevant.

I am so sick and tired of these mother effers whining about what they inherited from GWB. That’s not the way it works and if this administration is unable to take responsibility for government they should get out of the way and let others clean up their mess.

highhopes on October 29, 2009 at 10:23 AM

angryed on October 29, 2009 at 10:22 AM

I was thinking the same thing…

mankai on October 29, 2009 at 10:23 AM

Gobama!

Bleeds Blue on October 29, 2009 at 10:15 AM

Textbook case of a bitter-ender.

highhopes on October 29, 2009 at 10:24 AM

O/T It seems as though the truce between the WH and FNC hasn’t bled over to GB’s radio show.

thomasaur on October 29, 2009 at 10:24 AM

If the economy is back as crr343 claims, can we stop spending the rest of the so-called stimulus money?

angryed on October 29, 2009 at 10:24 AM

Remember back when unemployment was 5% GDP was growing 3% a year in 2005? Back then the NY Times, was calling it the worst economy ever. Now unemployment is twice as high and it’s boom time city in the MSM.

angryed on October 29, 2009 at 10:22 AM

Bush = Jobless recovery
Obama = Jobloss recovery

ChrisB on October 29, 2009 at 10:24 AM

crr6 on October 29, 2009 at 10:19 AM
Um, no… we understand economics… there was little to no real wealth creation and a negative impact on business investment.

Floating a fake economy will only make the double-dip even harder.

mankai on October 29, 2009 at 10:21 AM

You are right. Liberals need to learn some math. The more you study this report the worse it looks. Sadly, the libs and naive sheeple will believe the headline.

flyfisher on October 29, 2009 at 10:25 AM

You guys seem awfully grumpy about the good news. It’s almost like you’re rooting against America.

Weird.

crr6 on October 29, 2009 at 10:19 AM

Read the entire article and come back and point out the good news in detail OK? Not just headlines, but good solid details on how the economy recovererd in one quarter.

Johnnyreb on October 29, 2009 at 10:25 AM

Those figures are preposterous, possibly biased and likely to be false. Let’s dig in and find out what the real numbers are.

BottomLine5 on October 29, 2009 at 10:27 AM

angryed on October 29, 2009 at 10:22 AM

yeah even though 2008 was a bad year for jobs, we still gained 2.6 million under Bush which is about the same as his father in 4 years who was also supposedly the worst thing that ever happened to us and we needed Democrats and their media stooges to save us.

gsherin on October 29, 2009 at 10:27 AM

Let’s not forget that the Bush Tax Cuts expire at the end of ‘09 and when they do hold on to yer lug nuts.

thomasaur on October 29, 2009 at 10:21 AM

Actually I don’t think they expire til the end of next year. Which is why it’s absolutely pivitol that the GOP make significant gains in the House in the midterms. You know damn well Pelosi would let all those “tax decreases” expire.

As for crr6′s insinuation that we’re rooting against America, I want this economy to recover. But I want a real recovery. Not some artificially manufactured bump in GDP that’s setting us up for a double-dip recession in the near future. Look at the numbers, all of them(not just the 3.5% figure). The private sector isn’t growing, it’s shrinking. Unemployment is about to hit double digits. And porkulus “created or saved” only 25,000 jobs.

I’m not rooting against my country. I’m merely pointing out that this current administration and Congress are an unmitigated disaster.

Doughboy on October 29, 2009 at 10:27 AM

He owns it, officially, as of today. If the 4th quarter shows a decline (a very real possibility) there will be no blaming Bush, no matter how hard he tries.

This would be great news were it built on actual economic growth, and not theft from future quarters like so much of our current spending is.

BadgerHawk on October 29, 2009 at 10:28 AM

Its one thing to announce positive, short term GDP numbers – but notice every media outlet adds “signals and end to the recession”…

Really? Unemployment, inflation (stagflation) hasnt been touched – or is going up – and as this articel points out – the commercial sector has yet to receive the blow.

Housing took a sharp decline last month – after a short term bump and the dollar continues to lose value, while gold continues to rise. Defaults are also increasing – regardless of short term tax credits.

I believe GDP had moments of positive ticks from 1929-1944 also…

Odie1941 on October 29, 2009 at 10:28 AM

The big question: how’s Christmas spending going to be, with unemployment staying steadily high?

MadisonConservative on October 29, 2009 at 10:15 AM

Bad, but I guarantee we won’t hear much about it. That, or the numbers will be spun as higher than expected, surprisingly strong, etc. Or, the exact opposite of how it was reported under Bush.

changer1701 on October 29, 2009 at 10:28 AM

GDP Is….. Better Than Expected?

MobileVideoEngineer on October 29, 2009 at 10:18 AM

Everyone needs to read Denninger’s analysis Mobile linked above (thanks, you saved me the trouble).

From the Ticker:

Disposable personal income decreased in nominal terms q/o/q by 5.9% while in real terms (inflation adjusted) it decreased q/o/q by 7.4%! That is an enormous swing in purchasing power and not in the right direction!

Devastating!

flyfisher on October 29, 2009 at 10:28 AM

Those figures are preposterous, possibly biased and likely to be false. Let’s dig in and find out what the real numbers are.

BottomLine5 on October 29, 2009 at 10:27 AM

As is usual, at some point, the numbers will be revised.

ICBM on October 29, 2009 at 10:28 AM

Read the entire article and come back and point out the good news in detail OK? Not just headlines, but good solid details on how the economy recovererd in one quarter.

Johnnyreb on October 29, 2009 at 10:25 AM

They state controlled media knows that the majority of people who voted for Obama just read headlines. Obviously it’s true, look at all of the libs on here saying that it’s raining ponies and Bentleys. We should start wondering if they can read.

MobileVideoEngineer on October 29, 2009 at 10:29 AM

Economic Jenga.

Trusser13 on October 29, 2009 at 10:30 AM

At best, Dip One is over.

Akzed on October 29, 2009 at 10:30 AM

Gobama!

Bleeds Blue on October 29, 2009 at 10:15 AM

That’s another one I’m likely going to rub in your face in 3 months. I think you’re smart enough to understand this is not real growth, so you’ve obviously decided gloating today outweighs the ridicule you’ll be facing down the load.

Just like our President.

BadgerHawk on October 29, 2009 at 10:30 AM

Doughboy on October 29, 2009 at 10:27 AM

You are correct sir, my mistake.

thomasaur on October 29, 2009 at 10:30 AM

OT sort of – that picture of Barry freaks me out.

He doesn’t look human – it reminds me of one of those creepy brainwashed people that would be on the Twilight Zone.

gophergirl on October 29, 2009 at 10:31 AM

Gosh could there be an important election… say, in a few days?

mankai on October 29, 2009 at 10:31 AM

Sure the economy is growing, but its not growing in the exact way we want it to, so Obama is a failure.

The higher the jobless rate, the more we have to cheer over Obama’s failures. Go, jobless rate, go!

e-pirate on October 29, 2009 at 10:31 AM

Sure the economy is growing, but its not growing in the exact way we want it to,

e-pirate on October 29, 2009 at 10:31 AM

Fake growth shouldn’t be what you want, either, genius.

CDeb on October 29, 2009 at 10:33 AM

You are correct sir, my mistake.

thomasaur on October 29, 2009 at 10:30 AM

It is pretty confusing. I’ve heard so many times that the tax cuts expire in 2010, when they actually mean to say that this will happen at the end of 2010.

Either way, it’s gonna be a huge campaign issue. The GOP needs to make it clear that letting all of the tax cuts expire would affect almost all Americans who have a job.

Doughboy on October 29, 2009 at 10:34 AM

Sure the economy is growing, but its not growing in the exact way we want it to, so Obama is a failure.

The higher the jobless rate, the more we have to cheer over Obama’s failures. Go, jobless rate, go!

e-pirate on October 29, 2009 at 10:31 AM

Sadly, I’m starting to believe that there are a lot more idiot libs like this than we believe. I was just starting to get some true hope because people were starting to wake up, but then when crap like this happens and people don’t look at the REAL numbers and do research, they start drinking the Kool-Aid again.

MobileVideoEngineer on October 29, 2009 at 10:34 AM

People voting for “Mr. Peace” believing he was going to cut military spending ought to think again. Obama has dramatically increased military spending since he has become President. Check out the increases in the latest BEA GDP report:

Real federal government consumption expenditures and gross investment increased 7.9 percent in the third quarter, compared with an increase of 11.4 percent in the second. National defense increased 8.4 percent, compared with an increase of 14.0 percent.

Where are all the military-industrial-complex protesters? Why aren’t they marching on Washington? Where’s the news media?

markytom on October 29, 2009 at 10:34 AM

Wow, lots of bad news for the ‘Party of No’. GDP is up and unemployment is steady. Sorry about that.

simplesimon on October 29, 2009 at 10:35 AM

Sure the economy is growing, but its not growing in the exact way we want it to, so Obama is a failure.

The higher the jobless rate, the more we have to cheer over Obama’s failures. Go, jobless rate, go!

e-pirate on October 29, 2009 at 10:31 AM

We’re not cheering Obama’s failures – we’re pointing out he hasn’t succeeded.

gwelf on October 29, 2009 at 10:35 AM

Sure the economy is growing, but its not growing in the exact way we want it to, so Obama is a failure.

e-pirate on October 29, 2009 at 10:31 AM

How would you like the economy to grow? Personally I prefer private sector growth over government expansion. That’s not what’s happening here.

Doughboy on October 29, 2009 at 10:36 AM

Sure the economy is growing, but its not growing in the exact way we want it to,

e-pirate on October 29, 2009 at 10:31 AM

Unemployment is up, investment and disposable income are down… the growth is due to borrowed money and incentive buying which can’t last forever… the double dip (see the Great Depression) after the fake growth subsides could be devastating.

mankai on October 29, 2009 at 10:37 AM

Taxing the he!! out of the people who create investment and jobs to produce handouts for those that don’t is not a viable economic plan.

Baxter Greene on October 29, 2009 at 10:37 AM

Real gross domestic product — the output of goods and services produced by labor and property located in the United States — increased at an annual rate of 3.5 percent in the third quarter of 2009

Motor vehicle output added 1.66 percentage points to the third-quarter change in real GDP after adding 0.19 percentage point to the second-quarter change.

http://www.bea.gov/newsreleases/national/gdp/2009/txt/gdp3q09_adv.txt

So damned near half of that “growth” was the cash for clunkers bubble.

Terry_Dyne on October 29, 2009 at 10:37 AM

Sure the economy is growing, but its not growing in the exact way we want it to, so Obama is a failure.

The higher the jobless rate, the more we have to cheer over Obama’s failures. Go, jobless rate, go!

e-pirate on October 29, 2009 at 10:31 AM

Assignment: read the entire report and come back and report where the economy grew in real terms. You may not include cash for clunkers as it has expired. You may also not include Cash for houses which is about to expire as both of thoses markets were temporarily artifically infalted by our tax dollars. Show two areas of the economy other than those that improved in real numbers.

Johnnyreb on October 29, 2009 at 10:37 AM

You guys seem awfully grumpy about the good news. It’s almost like you’re rooting against America.

Weird.

crr6 on October 29, 2009 at 10:19 AM

I actually HOPE I’m a doofus without a clue.

Better me than the federal government. Because if we’re right and federal statistics are not a reliable indicator of the American economy, we’re all in serious trouble.

Chris_Balsz on October 29, 2009 at 10:37 AM

Wow, lots of bad news for the ‘Party of No’. GDP is up and unemployment is steady. Sorry about that.

simplesimon on October 29, 2009 at 10:35 AM

OMG are libs this dumb? Initial jobless claims being steady is not the same as unemployment being steady moron.

It means people are STILL LOSING JOBS.

MobileVideoEngineer on October 29, 2009 at 10:38 AM

simplesimon on October 29, 2009 at 10:35 AM

not really since i’ve been out of work a year myself, but jackoffs like you don’t bother yourself with boring details about how our economy allegedly grew but we lost 3/4 a million jobs in those 3 months.

gsherin on October 29, 2009 at 10:38 AM

Wow, lots of bad news for the ‘Party of No’. GDP is up and unemployment is steady. Sorry about that.

simplesimon on October 29, 2009 at 10:35 AM

It’s bad news for us all.

By the way, the RATE OF INCREASE of unemployment is steady. Not eve Orwell can make that into good news.

CDeb on October 29, 2009 at 10:38 AM

Oh Goodie!! Finally my chance to quote the mass murdering narcissistic role model of lefty enlightenment – will the thin skinned surrender monkey & his America hating wife like me more now?

“There is a serious tendency toward capitalism among the well-to-do peasants.”

Mao Tse-Tung

Ris4victory on October 29, 2009 at 10:39 AM

e-pirate on October 29, 2009 at 10:31 AM

Think back a couple of months ago when unemployment dropped ‘unexpectedly’ despite a quarter of a million people losing their jobs.

The headline looked great, but the reality wasn’t. It’s a similar situation here.

Your snark aside, most people here would love some real foundational economic growth. That’s not what happened, and will likely be reflected by another reduction in the upcoming quarters.

BadgerHawk on October 29, 2009 at 10:40 AM

I’m sorry, I don’t understand. Are you rooting for artificially inflated growth and a continued reduction in business investment?

Doughboy on October 29, 2009 at 10:18 AM

The DKos memo this morning told him to tell everyone that this is good news. Therefore it is.

MarkTheGreat on October 29, 2009 at 10:40 AM

Fake growth shouldn’t be what you want, either, genius.

CDeb on October 29, 2009 at 10:33 AM

Good catch, all of Obama’s stimulus efforts, including the first stimulus Obama somehow hypontized Bush into passing, were aimed at getting the 2009 3rd quarter GDP numbers artificially high just to try regular Americans into thinking Obama fixed the economy. Luckily, HotAir commentors are ever-vigilant and see right through the “fake” numbers. Foiled again, Ogabe!

e-pirate on October 29, 2009 at 10:40 AM

Trying to explain economics, job creation dynamics and pro-growth fiscal policy to an Obamacrat is like trying to explain the particle physics to your Pet Rock.

It certainly doesn’t penetrate the rock, because the rock has no brain to begin with.

Good Lt on October 29, 2009 at 10:40 AM

This is a bubble produced by shoveling our kids future earnings into this social experiment seeding stimulous.

Explain to me how the Dow is back up to 9850 less than 6 months after the crash, brokers are making $$ hand over fist, but no jobs are being produced, no goods are being produced, no houses are being financed, built or bought? Smoke and fargin mirrors.

Alden Pyle on October 29, 2009 at 10:40 AM

You guys seem awfully grumpy about the good news. It’s almost like you’re rooting against America.

Weird.

crr6 on October 29, 2009 at 10:19 AM

Give me unfettered access to the nation’s wealth, including the U.S. Treasury and I’ll drive the GDP up for you . . . and you won’t even have to pay all these politicians to fumble around. The latest number is not a result of an economic boom by a strong free market economy, rather, it is a number conjured up through massive government intervention into the very heart of our economic being. Remember, The basic formula for calculating the GDP is:

GDP = C + I + E + G

Where:

C = Consumer Spending

I = Investment made by industry

E = Excess of Exports over Imports

G = Government Spending

You can change the GDP at will by simply manipulating the variables in the equation . . . and this administration has acquired the means to do exactly that.

rplat on October 29, 2009 at 10:41 AM

They’re broadcasting this as gospel, but…

The Bureau emphasized that the third-quarter advance estimate released today is based on source data that are incomplete or subject to further revision by the source agency.

http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm

Does the Commerce Dept. have any reason to pump up the numbers, ahead of next Tuesday’s election?

franksalterego on October 29, 2009 at 10:41 AM

Every little manufactured twitch in the economic indicators has been the signal for stories that the recession may be over.

What is it about “not as bad as expected” that people don’t understand? “Bad” is bad, and virtually every sign of hope is an admission that we are still in a state of economic collapse, but it might not happen as quickly as realists fear.

In the meantime, those who are positioned to take advantage of windfalls from the government are getting fatter while the lives of average Americans (those not employed by the government or on Wall Street) continue to get worse.

Osama Obama and his band of fools need to go. Sensible people would not give a credit card to a willful, uneducated child and send it out to play, yet that is what the electorate has done.

There will be a day of reckoning. Right now, some of us are paying; inevitably, all will pay. And it’s going to hurt.

MrScribbler on October 29, 2009 at 10:41 AM

Anybody want to start a pool on how much they decrease this estimate of growth next month. These guys love to toss a number out and then revise it downward later.

ttime500 on October 29, 2009 at 10:41 AM

This is just a artificial blip and everyone knows it…it’s as real as the blatantly pathetic and bogus ‘created or saved’ jobs numbers the WH publishes. The ‘free-market’ economy is still contracting.

AUINSC on October 29, 2009 at 10:41 AM

Wow, lots of bad news for the ‘Party of No’. GDP is up and unemployment is steady. Sorry about that.

simplesimon on October 29, 2009 at 10:35 AM

The real unemployment rate is at 20%, investment is dropping and you find this cause to celebrate.

I suppose that if the GOP is the party of no then the Democrats are the party of yes – yes to a housing bubble, deficits, and unsustainable government propping up of the economy.

gwelf on October 29, 2009 at 10:42 AM

The higher the jobless rate, the more we have to cheer over Obama’s failures. Go, jobless rate, go!

e-pirate on October 29, 2009 at 10:31 AM

Typical leftists… discussing economics with them is like discussing physics with a 5-year-old.

I’ve yet to have a lefty explain to me which specific Bush policies led to the downturn… they just say that they did.

We are analyzing the WHOLE report and we understand the temporary impact of generated economic activity by government borrowing and incentive programs… but that is not real investment, real job creation nor self-sustaining growth as a result of supply and demand resulting from private capital infusion responding to a real market.

The government took a credit card and borrowed to the limit to buy some cars, some homes and to “employ” a few people… that bill will come due and the house of cards will fall if they don’t unleash the free market forces that will create real, self-sustaining wealth.

mankai on October 29, 2009 at 10:42 AM

You guys seem awfully grumpy about the good news. It’s almost like you’re rooting against America.

Weird.

crr6 on October 29, 2009 at 10:19 AM

skepticism that good news actually is good news, is now being grumpy about good news?

Is that straight out of the liberal logic generator?

MarkTheGreat on October 29, 2009 at 10:42 AM

Good catch, all of Obama’s stimulus efforts, including the first stimulus Obama somehow hypontized Bush into passing, were aimed at getting the 2009 3rd quarter GDP numbers artificially high just to try regular Americans into thinking Obama fixed the economy. Luckily, HotAir commentors are ever-vigilant and see right through the “fake” numbers. Foiled again, Ogabe!

e-pirate on October 29, 2009 at 10:40 AM

Somewhere out there is a freshman economics class that is sorely missing one of its students.

CDeb on October 29, 2009 at 10:42 AM

The One?

moonbatkiller on October 29, 2009 at 10:42 AM

Gobama!

Bleeds Blue on October 29, 2009 at 10:15 AM

That’s another one I’m likely going to rub in your face in 3 months. I think you’re smart enough to understand this is not real growth, so you’ve obviously decided gloating today outweighs the ridicule you’ll be facing down the load.

Just like our President.

BadgerHawk on October 29, 2009 at 10:30 AM

I know you don’t have a high opinion of Obama’s intellect, but don’t you think that even he and his advisers knew that the cash for clunkers and other stimulus were temporary measures? And that the plan was to end the slide and give the economy an opportunity to strengthen itself? If you get a transfusion, it’s not really your blood, but it gives the body the strength to start functioning on its own.

Yes, everyone knows that the economy was pumped up, as planned, by the stimulus. Now, do you think we’d have a better chance for growth this quarter if the economy was still declining? Or if there was money coming in and a little good news?

I’m betting on the latter.

Bleeds Blue on October 29, 2009 at 10:42 AM

Sssssshhhhhh…..Nancy and Steny are speaking.

It sounds as though she is declaring victory. “What a day!” cries Steny as he continues to praise Ms. Pelosi in her success.

I feel all Hope and Changey.

badtemper on October 29, 2009 at 10:43 AM

Fox reported yesterday that the Homebuyer tax credit will be extended through April 2010. My guess is it will be extended through the midterms.

TendStl on October 29, 2009 at 10:43 AM

Simpletonsimon
CCCP6
e-porno
etc…

Your economic analysis of the whole report is staggering.

mankai on October 29, 2009 at 10:44 AM

Wow, lots of bad news for the ‘Party of No’. GDP is up and unemployment is steady. Sorry about that.

simplesimon on October 29, 2009 at 10:35 AM

Unemployment is 9.8% and climbing. If that’s your definition of “steady”, I’d hate to see what you consider a shaky economy to look like.

Doughboy on October 29, 2009 at 10:44 AM

Good catch, all of Obama’s stimulus efforts, including the first stimulus Obama somehow hypontized Bush into passing, were aimed at getting the 2009 3rd quarter GDP numbers artificially high just to try regular Americans into thinking Obama fixed the economy

First of all, spending originates in Congress.

The first “stimulus” was formulated by the Democrat-controlled Congress and signed by Bush (reluctantly).

The second “stimulus” – a total failure by the standard of what was promised (ie, “millions of jobs by the summer”) was entirely a Democrat creation and is theirs for posterity. Congratulations – you hitched your dingy to a sinking ship.

One quarter of growth is not “sustained” growth.

And Obama has lost over 2 million jobs on his watch. And the Democrat Congress’ watch. With their “brilliant economic plans” and “stimuli.”

9.8% unemployment with no sign of abating. business investment down (ie, private sector growth down).

Stimulus “job creation” statistics overestimated by thousands upon thousands.

HELLUVA JOB, OBAMACRATS.

Good Lt on October 29, 2009 at 10:44 AM

They’re talking about the Healthcare bill, BTW. Forgot to mention that – they’re on cable news networks right now.

badtemper on October 29, 2009 at 10:45 AM

Hate to pee on the O-Bot parade, but the recession is just taking a nap right now, and will re-awaken some time in the second quarter, probably sooner.

How do I know this?

Team Soros/Obama (including the Federal Reseve) needs that to happen, or risk out-of-control inflation caused by the printing of close to a trillion dollars to cover the runaway debt.

Also, they need an economic crisis to continue policies designed to bankrupt the country and, in so doing, justify the takeover already underway.

But won’t this impact the 2010 elections and risk D losses? Yes, but Team Soros/Obama could care less.

The damage already will have been done, and it’s about Obama in 2012. With the control they will consolidate by then, his re-election will be almost assured.

While it may not work out quite that way, they know this is their one shot at the pig, for generations to come.

TXUS on October 29, 2009 at 10:45 AM

Good catch, all of Obama’s stimulus efforts, including the first stimulus Obama somehow hypontized Bush into passing, were aimed at getting the 2009 3rd quarter GDP numbers artificially high just to try regular Americans into thinking Obama fixed the economy. Luckily, HotAir commentors are ever-vigilant and see right through the “fake” numbers. Foiled again, Ogabe!

e-pirate on October 29, 2009 at 10:40 AM

I was also against the stimulus when Bush was pushing it. It’s amazing that you don’t even try to refute all the points being made about why the GDP isn’t the only indicator to use in diagnosing the health of the economy or the arguments as to why such a high GDP – given other factors – likely won’t sustain itself in quarters to come. Just keep making non-sequitur arguments and ignore the real issues.

gwelf on October 29, 2009 at 10:45 AM

Actually I don’t think they expire til the end of next year. Which is why it’s absolutely pivitol that the GOP make significant gains in the House in the midterms. You know damn well Pelosi would let all those “tax decreases” expire.

Doughboy on October 29, 2009 at 10:27 AM

A bill has to be passed by both houses of congress and signed by the president before the expiration of the tax cuts can be cancelled.

No way the Republicans will gain enough seats for that to happen.

MarkTheGreat on October 29, 2009 at 10:46 AM

Wow, lots of bad news for the ‘Party of No’. GDP is up and unemployment is steady. Sorry about that.

simplesimon on October 29, 2009 at 10:35 AM

You are such a sheeple, getalife.

OmahaConservative on October 29, 2009 at 10:46 AM

Wow, lots of bad news for the ‘Party of No’. GDP is up and unemployment is steady. Sorry about that.

simplesimon on October 29, 2009 at 10:35 AM

You liberal trolls don’t get it. Some of us desperately want the economy to turn around because we understand economics and history. We know where this is taking us. I would give Obama credit if this were organic growth. It’s anything but.

Politicians, of both parties, have utterly trashed the greatest economy in the history of the world. The facts are what they are. Stimulus after stimulus is foolish because we don’t have a liquidity issue — we’ve got a solvency issue. We’re broke. Exponential debt growth is unsustainable because you have to pay the money back WITH INTEREST. Math cannot be defeated — it is what it is. And based on mathematical realities, the trajectory we’re on is unsustainable. This cannot end well for the average American. If something doesn’t change, we’re witnessing the fall of this Republic.

flyfisher on October 29, 2009 at 10:46 AM

Also, the election is in 2010, but the congress won’t be seated until Jan 2011. After the cuts have expired.

MarkTheGreat on October 29, 2009 at 10:46 AM

You guys seem awfully grumpy about the good news. It’s almost like you’re rooting against America.

Weird.

crr6 on October 29, 2009 at 10:19 AM

Dissent is the highest form of patriotism! Quit questioning out patriotism!!

We are pointing out that there are real, systemic problems with the economy. A gimmicked up quarter of economic spending does not end a recession. Where is the actual economic growth in business investment?

rbj on October 29, 2009 at 10:47 AM

Explain to me how the Dow is back up to 9850 less than 6 months after the crash, brokers are making $$ hand over fist, but no jobs are being produced, no goods are being produced, no houses are being financed, built or bought? Smoke and fargin mirrors.

Alden Pyle on October 29, 2009 at 10:40 AM

The Market is forward-looking. Hard for you backward folk to relate to, I guess. Again, sorry for the good news.

simplesimon on October 29, 2009 at 10:47 AM

OmahaConservative on October 29, 2009 at 10:46 AM

\

Their lack of understanding of the report and of economics will lead them to despair when the other shoe drops… but I suspect (as with most lefties) they’re not really interested in economics… they have other agendas to worry about.

mankai on October 29, 2009 at 10:48 AM

Wow, lots of bad news for the ‘Party of No’. GDP is up and unemployment is steady. Sorry about that.

simplesimon on October 29, 2009 at 10:35 AM</blockquot

You are precisely the type of person this administration is targeting . . . dream on "simplesimon".

rplat on October 29, 2009 at 10:48 AM

Yes, everyone knows that the economy was pumped up, as planned, by the stimulus. Now, do you think we’d have a better chance for growth this quarter if the economy was still declining? Or if there was money coming in and a little good news?

I’m betting on the latter.

Bleeds Blue on October 29, 2009 at 10:42 AM

There is no money coming in. The private sector is shrinking. That’s where tax revenue is created. Why do you think states are running massive deficits right now? Because they can’t borrow from China or print trillions of dollars like the federal government.

The government can’t keep “pumping up” the economy by spending hundreds of billions that it doesn’t have. For a real sustained, long-term recovery, we need a strong and healthy private sector. We have the opposite right now and it’s only getting worse.

And God help us if Obama gets his health care or crap-and-betrayed passed.

Doughboy on October 29, 2009 at 10:49 AM

The Market is forward-looking. Hard for you backward folk to relate to, I guess. Again, sorry for the good news.

simplesimon on October 29, 2009 at 10:47 AM

I though when unemployment was high… and the market was going up… that was “the rich getting richer”… and thus fodder for every left-wing musician to write a song about…?

mankai on October 29, 2009 at 10:49 AM

The Market is forward-looking. Hard for you backward folk to relate to, I guess. Again, sorry for the good news.

simplesimon on October 29, 2009 at 10:47 AM

Backward, like using 1929-ish economics all over again?

CDeb on October 29, 2009 at 10:49 AM

I also wonder where the leftrolls in here doing endzone dances about 9.8% unemployment and negative business investment are each time unemployment ticks up.

Good Lt on October 29, 2009 at 10:49 AM

He doesn’t look human – it reminds me of one of those creepy brainwashed people that would be on the Twilight Zone.

gophergirl on October 29, 2009 at 10:31 AM

“V”

MarkTheGreat on October 29, 2009 at 10:49 AM

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