WP/AP: Economy Grows at Slowest Pace in 3 Years

[DeepModem Mom]

Economy Grows at Slowest Pace in 3 Years
By JEANNINE AVERSA
The Associated Press
Friday, January 27, 2006


WASHINGTON -- The economy grew at only a 1.1 percent annual in the fourth quarter of last year, the slowest pace in three years, amid belt-tightening by consumers facing spiraling energy costs.

Even with the feeble showing from October through December, the economy registered respectable overall growth of 3.5 percent for all of 2005 _ a year when business expansion was undermined by devastating Gulf Coast hurricanes.

The Commerce Department report, released Friday offered the latest figures on gross domestic product, the best measure of the country's economic standing.

The 1.1 percent growth rate in the fourth quarter marked a considerable loss of momentum from the third quarter's brisk 4.1 percent pace. The fourth-quarter's performance was even weaker than many analysts were forecasting. Before the release of the report, they were predicting the GDP to clock in at a 2.8 percent pace.

The 1.1 percent growth rate was the smallest gain since the final quarter of 2002, when the economy expanded at just a 0.2 percent rate....


http://www.washingtonpost.com/wp-dyn/content/article/2006/01/27/AR2006012700482.html

[1932]

1. Why did the interest rates go up? I thought you raised interest rates when

the economy is going full bore so that you can prevent inflation?

Did we raise interest rates so much that they killed the economy?

[thefloyd]

2. Oh yeah

the fed really screwed up.

[Yavin4]

12. Interest Rates Have Been Artificially Low for A Long, Long Time

Inflation is spiraling out of control, and the Fed had to raise rates in order to slow down inflation.

[Carni]

3. You should have seen the pathetic display of shock on CNBC

Disbelief and shock from the bald guys on CNBC this morning because they just don't believe these figure can be acurate.

*They don't understand this* bla bla bla bla

I had to change the channel.

[1932]

6. I think the business media must know what's a stake.

By treating these numbers as if they're accurate, they feed (or confirm) a suspicion among consumers that the economy is not doing well, which could then pull the rug out from the economy. Consumer spending makes up 2/3rds of the economy. The wealth of everyone at the top depends on average Americans feeling willing to spend themselves into oblivion.

So, to keep the gray train rolling, they have to act like these numbers aren't real (or don't say what they obviously say about the economy).

[gauguin57]

4. but but but NPR this morning said Bush would brag about strong economy

in the State of the Union speech!

Something doesn't add up. hmmmmmmmm.

[Bonhomme Richard]

5. And consider. That growth is at the top level.

We all know that all the "good" economic news they have been promoting never trickled down to the rest of us anyway. Every one of us know people, or are ourselves, going through some very fough economic times.
If profits are drying up at the top levels then maybe, maybe, the powers that be might also get on the remove shrub bandwagon.

[bluestateguy]

7. I wonder what their excuse will be this time

The excuse presidency.

[Demeter]

8. The Excuse Is Somebody Goofed In the Fudge Department

They can't even make up a lie big enough to conceal how bad things really are, anymore.

[Binka]

9. These Guys Are Fudging The Fudge!

Disgusting bastard gits! If the Fudge don't Stick you must not Lick!

[Demeter]

10. I Didn't Know That Brown Stuff Was Fudge. Are You Sure?

It doesn't smell like fudge....

[OneBlueSky]

11. subtract mortgage equity withdrawels, and you likely get . . .

negative growth . . . consumers are driving this economy, and they're getting the money to do so by drawing on their ever-increasing home equity values . . . when that stops, the economy crashes . . .

[joefree1]

13. With the coming burst of the Housing bubble

Get ready for a rocky ride this year. Stock up on can goods.

Good news is this will happen in an election year.

[maddezmom]

14. kick

[ckramer]

The economy slowed to a near crawl in the final quarter of 2005, a listless showing that was the worst in three years. However, growth was respectable for the year and is expected to perk up again soon.

Gross domestic product clocked in at an annual rate of just 1.1 percent from October through December. That marked a loss of speed compared with the third's quarter's brisk 4.1 percent pace, the Commerce Department reported Friday.

link

[AX10]

15. Look everyone, it's Katie Couric!!!!!!!!!

Couric: "excuse me ckramer, the economy is good, employment is up and wages are up, so is the stock market. Do you liberals just have to smear OUR President with the truth......err...lies...um, er...."

:eyes:

[Warpy]

16. yeah, and that news sent the stock market back up

over 10,900? Yeah, I think we can safely conclude that the market is being fiddled.

[doc03]

17. The Market was up because profits were up, it doesn't matter

if we make anything here as long as people have enough money to buy the Chinese products.

[rodeodance]

18. I gotta wonder what the sping will in the SOTU!