Decline in 4th Qtr '08 GDP Revised Up to 6.2 %

As this writer strongly anticipated, the final numbers for the economic collapse as reflected in GDP numbers for the fourth quarter of 2008 were revised from an initial report of a decline of just 3.8 % to a more accurate figure of a 6.2 % downturn, the worst experienced nationally since the first quarter of 1982.

The frightening thing about the revision is that the numbers for this quarter we are now in are going to be utterly horrifying. Estimates for this quarter are likely to show a decline of greater than 8 % and perhaps even approaching 11 %. Second quarter numbers for 2009 are likely to be about the same, but worse numbers are a distinct probability.

2009 will be the worst year economically since before World War II, and the numbers will bear that out quite clearly and painfully. But each of us will be experiencing it personally and will know firmly firsthand.

The S&P 500 stock index closed Friday 27 February '09 at its lowest level since early December 1996, and other indices are not far behind that downward pace.

http://www.marketwatch.com/news/story/GDP-revised-decline-62-fourth/story.aspx?guid={F68D38CA-2BAE-45B0-A247-760432E0BF1A}

http://www.latimes.com/business/la-fi-gdp28-2009feb28,0,4970133.story

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