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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (17185)	11/30/2004 11:36:42 AM
From: Chispas	Read Replies (8) \| Respond to of 116555

How about that $2M for the presidential yacht ? ...... ...... yubanet.com

To: Knighty Tin who wrote (17185)	11/30/2004 11:44:56 AM
From: Chispas	Read Replies (1) \| Respond to of 116555

And, the demonstrators are boarding the busses ...... ...... news.yahoo.com

To: Knighty Tin who wrote (17185)	11/30/2004 2:33:59 PM
From: mishedlo	Respond to of 116555

A closer look at GDP by RodgerRafter on the FOOL Today's GDP revision showed that the economy grew a whole buch during July, August and September. Of course you should already know that, because according to the government you were responsible for almost all of that growth: bea.doc.gov (download the spreadsheet entitled "Tables from news release") Of the 3.9% number for total annualized growth in economic output, consumer spending accounted for 3.53%, leaving 0.46% for private investment, 0.23% for government expenditures and a subtraction of 0.27% for the trade gap. Breaking down the consumer portion we find the biggest growth was in: Motor Vehicles and parts; 0.97%. Car makers report sales when they ship models to dealers, not when somebody actually purchases them (or pays for them for that matter). Food; 0.41%. We spent $25.7 Billion more on food in Q3, supposedly adjusted for inflation. If you believe inflation is being adequately measured, then we really feasted up a storm last quarter. Otherwise, you can see how understating inflation boosts GDP. Medical Care; 0.59%. We spent $14.9 Billion more on medical care compared to Q2 and $45.0 B vs. a year ago. Since millions more people are without health care, those who get it must be getting some REALLY GOOD medical care. Funny how the government doesn't hedonically adjust downward for all the hassles and BS we have to endure with our HMOs these days. Breaking down the private investment portion: Residential housing; 0.10% grew at its slowest rate since Q4 2001. Equipment and software; 1.28%. Bigger impact than cars? Love those hedonic adjustments, don't you. Selling the same amount of stuff really means selling more when you hedonically adjust for how much better it is than the stuff you sold last year. Changes in nonfarm inventories; -0.99%. Too bad all that extra stuff that was supposedly produced didn't actually get sold. Breaking down the government expenditures portion: National defense; 0.44%. $726 B worth of dead Iraqis and global military domination (annualized Q3) is great for the GDP ($9.7 more than Q2 and $32.1 B more than the year ago quarter). Federal Nondefense; -0.12%. Who says GWB isn't fiscally responsible. He makes the tough decisions to cut spending on anything that might actually help Americans. State and Local; -0.09%. Since State and Local governments aren't supposed to be able to run a deficit, this gives a better idea of how the economy actually did last quarter.