Problem Solved! GDP Shows 3.5% Growth

No, just kidding. We know you still don’t have a job. The Commerce Department announced that the economy grew 3.5% in the third quarter — snapping the longest streak of economic contraction since 1947.

From the AP:

The third-quarter’s performance – the strongest since right before the country fell into recession in December 2007 – was slightly better than the 3.3 percent growth rate economists expected.

Armed with cash from government support programs, consumers led the rebound in the third quarter, snapping up cars and homes.

Something about the phrase “armed with cash from government support programs” makes us wonder what surprises next quarter will hold.

Economy grows in 3Q, signals end of recession [AP]
(Photo:mraaronmorris)

Comments

Edit Your Comment

  1. The_Legend says:

    Watch the oil speculators have a field day with this.

  2. barb95 says:

    Mission Accomplished!

  3. MostlyHarmless says:

    Maybe next quarter people will loosen their strings a bit for Xmas? As prominent cartoonists have pointed out, all it takes to break out of a recession is for enough people to think that they have some money to spend.

    • Nighthawke says:

      @MostlyHarmless: Not very likely, last week’s unemployment claims shot up another 500,000. This climb in claims numbers has been fairly consistent and has shown little chance of reversing or slowing down in the near future.

  4. temporaryscars says:

    You have to start somewhere.

  5. Mecharine says:

    Of course, no one is asking how the economy grew when so many people got fired.

    Which is the reason why the economy grew ,because companies fired so many people, their payrolls are very light…

    • ARP says:

      @Mecharine: It’s a cycle. Companies fire people, which helps them control costs/increase profitability, they grow/expand, hire new people, and….

      But yes, GDP expanded not because of real growth, but due to cost cutting measures and the very wealthy continuing to do well.

    • TouchMyMonkey says:

      @Mecharine: Because sooner or later, somebody has to buy a new washing machine, or a snowblower (winter is coming), or a car.

  6. ThinkerTDM says:

    There’s no doubt a lot of backslapping and high fives going on now, both in Wall Street, as well as DC.
    Of course, not so much on Main street…

  7. hi says:

    NBER is the source for determining the recession NOT AP. Check the source if you want real factual information:

    [www.nber.org]

    Just because AP and the president come out and say “Hey Thursday we’ll be out of the recsession!” doesn’t mean it’s true. And.. it’s not true.

    • hi says:

      @hi: I didn’t mean they are the source for determining the recession as it’s obviously determined by business cycles. What I meant by that was they are the people who research and are knowlegable and will give you the true facts of the situation.

      Look at the final figure on the list.. 2007.. the cycle continues.

  8. Coelacanth says:

    Sounds like a fitting topic for The Daily Show’s “You’re Welcome” segment.

    I agree with “Hi” and find it rather annoying that newspapers and media are polling the layperson about when we’re “really” out of a recession. It’s a technical term, and should be adhered to accordingly by the bodies which govern its use (the NBER.) Anything else is merely hype with no factual basis.

  9. MooseOfReason says:

    1. Government spends lots of money.
    2. GDP increases.
    3. Media tells you this means the economy is recovering.
    4. ?
    5. Profit.