Saturday, January 31, 2009
I am sure that you have all heard about the Steep Slide in Economy as Unsold Goods Pile Up. I won’t bore you with my view of the report because others have already done a superb job of interpreting it. Here are several well-articulated takes on the various components of the Bureau of Economic Analysis’ massive GDP report:
- From the Baseline Scenario: Random Observations on the GDP Announcement
- From ECONOMICPICDATA: GDP Price Index Turns Negative: Stimulus on the Cheap?
- From WSJ Real Time Economics: GDP Data Show Pain of U.S. Slump Abroad
- From Econbrowser: Oh yes it's a recession all right
But here are my two scents worth on the report: housing continues to be the bane of the U.S. economy's existence, even though new residential construction (housing starts) hit its lowest level...ever (at least since the series started in 1959)!Residential construction's share of overall GDP is slipping quickly.
But it's drag on the economy is not.
This is truly amazing. Have you ever seen the DVD series Planet Earth? There are several shots of a predator (let's say a lion) attacking its prey (perhaps a Zebra); and even though the prey was likely to escape, the predator just wouldn't let go. Something like that.