The statistical findings of how the economy performed in the final quarter of last year have been released and the preliminary numbers are grotesque. The GDP declined by 3.8 %, a number that is sure to be adjusted to a worse extent in the coming months as the economic findings are further finalized. The actual number is closer to 5 %, but buildups of inventories overstated the strength of the economy. The downturn this last quarter is the worst since the first quarter of 1982 when a GDP decline of 6.4 %. The worst quarterly decline since measuring commenced was 10.4 % in the first quarter of 1958.The staggering thought is how bad the numbers will be in the current quarter. Early estimates on how bad the decline in the GDP will be in this current quarter range from over 6 % to as much as 10 to 11 %. January's record worst decline across the boards in all stock indices are an overwhelming leading indicator of just that.
http://seattletimes.nwsource.com/html/politics/2008688885_apeconomy.html
http://www.marketwatch.com/news/story/The-worst-still-ahead/story.aspx?guid={0A24EE42-6423-4626-BC1D-668514EE0347}
http://www.marketwatch.com/news/story/US-fourth-quarter-GDP-contracts/story.aspx?guid={913CEBDA-AE34-48A8-84CC-80ECCBA1B6E6}
http://online.wsj.com/article/SB123331631097133089.html
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