Third Quarter GDP Down 0.5%

The gross domestic product, the broadest measure of the U.S. economy, fell by the annual rate of 0.5% in the summer, according to the final revision from the Bureau of Economic Analysis, released on Tuesday.

The measure was unchanged from the government's prior revision for the third quarter, matching economists' expectations. The report compares the three month period that ended Sept. 30 to the preceding quarter.

The 0.5% decline marks the biggest drop in seven years. A 3.8% slump in personal consumption during in the third quarter helped to drag down the overall GDP, according to government figures.

read the CNN story

My thoughts: The Paulson/Bernanke Depression and aftermath may likely be recorded as the most avoidable economic downturn ever. The entire bailout idea was insane. The double digit inflation that Bernanke is cooking up at the Fed currently, should be ready in 2011-12.

GDP Analysis

from the Mess Greenspan Made

GDP Analysis

source

GDP Declines 0.3% in the 3rd Quarter

The gross domestic product, the broadest measure of the nation's economy, fell at an annual rate of 0.3% in the period. That compared with a 2.8% growth rate in the second quarter, when economic stimulus checks and strong exports spurred by a weak dollar resulted in solid growth that vanished in the latest reading...

This latest reading is yet another warning sign of a recession, and marked only the fifth quarter in more than 17 years in which GDP fell below zero. Much of the impact of the recent crisis in financial and credit markets was not reflected in this reading, which reflects the period ending Sept. 30.

from CNN

My thoughts: Not quite the gloom and doom that the media would have you believe. The rule of thumb for a recession remains 2 quarter of GDP decline. The offical start of a recession is done by the NBER.