On-Topic Economy Dies in 4th Quarter -- Annual Rate of 0.1% GDP

[Jack Springer]

"U.S. economic momentum screeched to a halt in the final months of 2012, as businesses pared back inventories and government spending fell sharply, while lawmakers struggled to reach a deal on tax increases and budget cuts.​

Source Link: http://blogs.wsj.com/economics/2013/01/30/u-s-economy-unexpectedly-contracts/

The nation's gross domestic product shrank for the first time in three and a half years during the fourth quarter, declining at an annual rate of 0.1% between October and December, the Commerce Department said Wednesday."​

http://online.wsj.com/article/SB100...3611039517142.html?mod=WSJ_hpp_LEFTTopStories​

You can't really spin this to make it look like it's a good thing. Apologists will say that the year's growth rate of 2.2% is better than the 2011 rate of 1.8% and also blame Congress for not passing new laws. However, the wealth and health of the USA is in the doldrums. We are failing. We are becoming Europe.

No talk in DC about jobs -- only talk about social issues.

​

 

[crimsonpaine]

I suspect it to get worse as more companies cut hours to 28 per week to avoid Obamacare insurance requirements . Less money being brought home with rising costs is depressing. And payroll tax has gone back up to the old 7.65% (6.2 ss 1.45 mc). So you're making less even if your hours haven't been cut.

 

[palbert]

Anent the economy, one recalls Mark Twain

The reports of my death have been greatly exaggerated.

 

[Orlandude]

The economy did not die...it retracted. Big difference. During the fourth quarter, the nation was subjected to the "doom and gloom" rhetoric of the so-called fiscal cliff. That's not spin. It's a fact. The economy responded. I believe that quarter will be negated by a robust first quarter. Yesterday the Dow nearly hit 14,000. That's hardly representative of an economy that died.

 

[nycguydowntown]

They cut defense spending that was the issue.

 

[xbuzzerx]

while lawmakers struggled to reach a deal on tax increases and budget cuts.

Hey Jack, did you miss that part^?

Also, did you miss the fact that your party toyed with letting the country spin into oblivion rather than come to the table like adults and negotiate until the 11th hour?

 

[chrisrobin]

Hey Jack, did you miss that part^?

Also, did you miss the fact that your party toyed with letting the country spin into oblivion rather than come to the table like adults and negotiate until the 11th hour? M

Old Chinese quotation: "Statistics never lie, but liars use statistics"

 

[CowboyBob]

Springer, thanks for being it to everyone's attention just how damaging republican obstructionism is to the country. Your post is proof republicans are out to destroy the country in their pathetic efforts to get at the President of the United States.

Cutting government spending and the fear of republicans sending us over the "fiscal cliff" is what caused the slow growth.

Thanks again for clearing up just how bad republicans are bad for the country. They don't talk about jobs jobs jobs, but only abortion, rape, immigration and them pesky homosexuals. We must vote out all republicans before they destroy us completely.

 

[Kulindahr]

Retractions like this can be the prelude to improved growth, as companies make themselves more flexible -- so there's no reason to think the sky is falling; wait two quarters and then draw conclusions.

But it's evident that a do-nothing Congress, specifically the House, isn't helping. Employers don't know from one month to the next what the Republicans will turn into a crisis, threatening disruption that will alter interest rates, or where government cuts will strike next, making it impossible to determine what future plans should look like.

One of the best things Obama could do at this point would be to issue an executive order putting a freeze on the introduction of new regulations. If a law Congress has passed requires a new regulation, let a bipartisan congressional committee determine what it should be (at least that way they'd be doing something useful).

But instead of being practical and effective, Congress is going to waste time over feel-good measures about guns, that won't go anywhere or accomplish anything if they did.

 

[Zeno Lorea]

I'll start believing this when I see long lines of US citizens waiting in line outside Mexican consulates trying in vain to get a visa.

 

[xbuzzerx]

With that in mind, Jack, I believe you're engaging in:

 

[CowboyBob]

^it's the same old same old..... desperately trying to paint the Obama Presidency as a failure.

 

[HenryReardon]

... even at the cost of the facts.

He

Here are a few facts for you. The Obama recession is going to get worse in 2013, as big chains contemplate closing hundreds of stores. Nobody knows how many stores will actually be closed, but the numbers being tossed about are significant:

http://247wallst.com/2013/01/29/eight-retailers-that-will-close-the-most-stores/


Barnes and Noble 190-240 stores could be closed
Office Depot 125-150
J C Penney 275-350
Sears/K-Mart 275-350
Best Buy 200-250
Gamestop 500-600
Office Max 150-175
Radio Shack 450-550


US Economy shrank in 4th Quarter

http://www.washingtonpost.com/blogs...ks-in-fourth-quarter-for-first-time-since-09/

 

[CowboyBob]

He

Here are a few facts for you. The Obama recession is going to get worse in 2013, as big chains contemplate closing hundreds of stores. Nobody knows how many stores will actually be closed, but the numbers being tossed about are significant:

http://247wallst.com/2013/01/29/eight-retailers-that-will-close-the-most-stores/


Barnes and Noble 190-240 stores could be closed
Office Depot 125-150
J C Penney 275-350
Sears/K-Mart 275-350
Best Buy 200-250
Gamestop 500-600
Office Max 150-175
Radio Shack 450-550


US Economy shrank in 4th Quarter

http://www.washingtonpost.com/blogs...ks-in-fourth-quarter-for-first-time-since-09/

Appears the Bush Depression which President Obama pulled us out of may be made worse by Republican Obstructionism. Republicans are also notorious for closing plants, shipping jobs overseas, creating minimum wage jobs with zero benefits and no health care so the 1% can have more profits to hide in overseas accounts.

But I'm convinced the republicans will fail with this attempt too. They haven't been too successful lately in any endeavor.

 

[xbuzzerx]

There's a very specific reason GameStop is failing en masse and it has *nothing* to do with the economy. The videogame industry proved itself virtually recessionproof through the worst of the collapse anyway.

It's because this is an age of no-disc, no-box digital distribution and purchase downloading of software, and GameStop relies on trading hard copies of games and used hard copies of games. It's having its niche sold out from under it by digital distribution directly from the distributor or developer to the end consumer. That's only going to get worse and they are an extinct model of business waiting to die.

And that's just one example. Many of those big, overextended chains are struggling for reasons that have nothing to do with the economy. I wonder how many RadioShacks are suffering because of Best Buy, or how many of those other stores are suffering because of Wal*Mart.

Best Buy btw while being overextended and having huge overhead is suffering the same thing I mentioned above... half of a Best Buy is the music and movies and videogames section and that's all going digital. People don't need to drive to an electronics store and browse for an hour to get movies, songs or games anymore, so in large part, they don't. People are only going there for the higher end electronics hardware which yes, when money is tight people are going to pass on a brand new flatscreen plasma TV or a new laptop.

 

[vulgar_newcomer]

Reardon post a list of well known long term struggling retailers and automatically cuts out the lead from his own link in favor of blaming it on Obama. [Text: Removed] many of these retailers are struggling for a decade or more. Mitt's own Staples and sports authority should be on the list too, if he was President today it wouldn't change much for these retailers.

Book stores like CD/record stores are dead in the water because of technology and this.

For many retailers, the sales situation is so bad that it is not a question of whether they will cut stores, but when and how many. Most recently, Barnes & Noble Inc. (NYSE: BKS) decided it had too many stores to maintain profits. Its CEO recently said he plans to close as many as a third of the company’s locations.

Several of America’s largest retailers have been battered for years. Most have been undermined by a combination of e-commerce competition, often from Amazon.com Inc. (NASDAQ: AMZN) and more successful retailers in the same areas. Borders and Circuit City are two of the best examples of retailers that were destroyed by larger bricks-and-mortar competition and consumers transitioning to online shopping. These large, badly damaged retailers could not possibly keep their stores open.

Read more: Eight Retailers That Will Close the Most Stores - 24/7 Wall St. http://247wallst.com/2013/01/29/eight-retailers-that-will-close-the-most-stores/#ixzz2JUfvB8Y2

 

[HenryReardon]

. [Text: Removed] many of these retailers are struggling for a decade or more. s.

[Text: Removed] Obama has done absolutely nothing to help the economy.
He's too busy looking for photo ops and demeaning himself and the office appearing on talk shows etc.

 

[xbuzzerx]

^ He's not only supposed to do that, he's supposed to do that while having absolutely everything filibustered, by a GOP that believes cutting spending (everywhere) is the answer.

 

[tigerfan482]

He

Here are a few facts for you. The Obama recession is going to get worse in 2013, as big chains contemplate closing hundreds of stores. Nobody knows how many stores will actually be closed, but the numbers being tossed about are significant:

http://247wallst.com/2013/01/29/eight-retailers-that-will-close-the-most-stores/


Barnes and Noble 190-240 stores could be closed 2012 CEO Compensation: $10 million
Office Depot 125-150 2011 CEO Compensation: $2.7 million
J C Penney 275-350 2011 CEO Compensation: $53.3 million
Sears/K-Mart 275-350 2011 CEO Compensation: $10 million
Best Buy 200-250 2012 CEO Compensation: ~$18 million
Gamestop 500-600 2011 CEO Compensation: $3.2 million
Office Max 150-175 2010 CEO Compensation: $12.9 million
Radio Shack 450-550 2011 CEO Compensation: $5.9 million


US Economy shrank in 4th Quarter

http://www.washingtonpost.com/blogs...ks-in-fourth-quarter-for-first-time-since-09/

Went ahead and added some additional info there. They don't pay their CEOs like they are struggling companies. The fact of the matter is that the President has no control over internal corporate mismanagement and lack of economical responsibility. Most corporations are sitting on tons of cash that they aren't investing. They refuse to raise wages. They hire the minimum number of people to get by. They do all kinds of personnel and accounting moves to avoid having to pay people benefits. They move jobs and manufacturing overseas to save money so the CEOs can get paid like noted above. Corporate greed is one of the largest contributors to our lack of good economic performance.

The other major contributor to the lack of good economic performance is the inability of our Congress to get anything done. When we have a new self-made fiscal crisis every 2 or 3 months, there is absolutely no certainty in the market and thus people hold back investing, businesses don't hire or expand, and people save instead of spend money because no one knows what the next emergency stopgap legislation will bring. There is some blame to be had by all parties, but I would place a lion's share of the blame on the Republicans who have been (and continue to be) obstructionists who have a no-compromise, my-way-or-the-highway mentality.

You can try to blame the President all you want, but there is absolutely nothing he can do by himself to affect the way the economy is going. Now if you're suggesting that Congress should give him the authority to command businesses to hire, limit corporate profits, set the price of gas, groceries, and other necessary commodities, set minimum standards for worker salaries and benefits, and directly tie the increase in CEO and executive salary to that of the rest of the workforce, then I say let's get to it and then, maybe, you will be correct in placing your blame squarely on the President.

 

[rareboy]

He

Here are a few facts for you. The Obama recession is going to get worse in 2013, as big chains contemplate closing hundreds of stores. Nobody knows how many stores will actually be closed, but the numbers being tossed about are significant:

http://247wallst.com/2013/01/29/eight-retailers-that-will-close-the-most-stores/


Barnes and Noble 190-240 stores could be closed
Office Depot 125-150
J C Penney 275-350
Sears/K-Mart 275-350
Best Buy 200-250
Gamestop 500-600
Office Max 150-175
Radio Shack 450-550


US Economy shrank in 4th Quarter

http://www.washingtonpost.com/blogs...ks-in-fourth-quarter-for-first-time-since-09/

d'uh.

Best buy, Radio shack Gamestop and Barnes and Noble are closing becuase their day is done following them overbuilding like mad a decade ago. The shift to online shopping also is affecting Penney and Sears...for example...we now purchase over 50% of all our household goods from these types of stores on line.

The e world is our shopping mall.

Oh...and Jack?

You should only fucking dream of being Germany.