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To: FJB who wrote (92853)2/27/2010 11:40:43 PM
From: stock bull  Respond to of 213177
 
I just updated my previous message. Here's the link:

Message 26351099

Stock Bull



To: FJB who wrote (92853)2/28/2010 7:49:34 AM
From: slacker711  Respond to of 213177
 
That's because inventory replenishment accounted for most of the fourth-quarter GDP increase -- about two-thirds.

Just to clarify, it wasnt inventory replenishment that caused the GDP increase, it was that inventory destocking slowed sharply. This still isnt as good as if we saw final demand driving the number, but it isnt like businesses are sitting on a bloated amount of inventory either. We probably have a quarter or two of actual inventory replenishment ahead of us just to get back to a "normal" amount of inventory....assuming that there isnt a "new normal" for this number.

Slacker