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GDP Data Suggests Weak Growth And QE2 From The Fed

Saturday, October 30, 2010 - 8:01 AM
From the Washington Post:
The nation's GDP rose at a 2 percent annual rate in the July-through-September quarter, the Commerce Department said. That was a slight improvement from the 1.7 percent growth rate in the second quarter and the fifth straight quarter of expansion.

This isn't enough growth to make a difference, and it will probably be another statistic to push the Fed into QE2 with the goal to drive down long-term interest rates.

This Calculated Risk Blog post has a good review on the relationship of GDP with unemployment. With a 2% real GDP growth, unemployment will likely still rise.
Ken TuminKen Tumin5,472 posts since
Nov 29, 2009
Rep Points: 125,708
1. Saturday, October 30, 2010 - 6:42 PM
What should be noted is that the Fed is intent on generating another asset bubble to accommodate the sale of Treasury and Agency bonds and to give Wall Street and banking more funds to speculate with.  The Wall Street banksters plan to use Fed funds to jack up the market even more, which is already overpriced by at least 20%.

PurplesagePurplesage25 posts since
Oct 11, 2010
Rep Points: 73