The real kicker in my opinion will be the government's first estimate on the third quarter GDP. That's huge and it comes on Thursday. This will be the standard by which the movement into recovery is truly gauged. If the numbers are good, investors will become believers instead of joy riders. Still its a matter of degrees of good. We are reading that a 3.2% increase in GDP is predicted. Don't forget that the number is inflated by the government's money transfusion into the banking system AKA bailout, along with cash for clunkers, and an $8,000 first time home buyer gift coupon.
Reuters: Earnings, data to determine rally's fate
Thursday's GDP report is forecast, according to economists polled by Reuters, to show that gross domestic product, a measure of all goods and services produced within the U.S. borders, grew at an annual rate of 3.2 percent in the third quarter, its first quarterly expansion in more than a year.
3 comments:
Pull all the Gov't cash out and what would u have? A collapsed economy.
Its interesting to speculate on what a collapsed economy in present day America would be like - all the present day characteristics of neo-feudalism minus the SUVs and tens of millions of jobs.
We still might still get to see this happen yet. I don't think it's possible to go on inflating wall st. endlessly. Backing up a bunch of losing hi stakes gamblers almost never pays off!
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