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GDP crashes by a full 1/3

dishstaller

Administrator
Staff member
Joined
Sep 27, 2000
Messages
26,296
Seeing headlines all over the place this morning....GDP crashes by 32.9%. Yep, that's what you get when you force the economy to shut down.

BTW, Sweden did NOT shut down and collapse their economy and they are doing fine.....they are also totally absent from any US news sources.

We are being rules by people who are led by their emotions and behave like undisciplined children.
 

DishDude1

Dish Network Retailer
Joined
Jun 22, 2001
Messages
1,803
You think Q3 will be any better? We're open but everyone is afraid to do anything.
 

eddie_willers

Dish Network Retailer
Joined
Apr 9, 2001
Messages
23,535
Seeing headlines all over the place this morning....GDP crashes by 32.9%. Yep, that's what you get when you force the economy to shut down.

BTW, Sweden did NOT shut down and collapse their economy and they are doing fine.....they are also totally absent from any US news sources.

We are being rules by people who are led by their emotions and behave like undisciplined children.
No, GDP Didn’t Plunge “32.9%” in Q2, it Plunged a Still Terrible 9.5%: Time to Kill “Annual Rates”
by Wolf Richter
This morning, we were confronted with horrible news, which we’ve been expecting all along, but this news, though truly horrible, was also a result of something called “annual rate.” What we saw in the headlines was that GDP, adjusted for inflation, collapsed by “32.9%” in Q2.

That should have been reported as “32.9% Annualized.” It was an “annual rate,” meaning that the Q2 drop was essentially multiplied by 4 (with adjustments) to obtain a theoretical figure that shows what GDP for the whole year would look like if it kept plunging like this for four quarters in a row. But that is unlikely. The Bureau of Economic Analysis, which reported this GDP data this morning, also reports – deeper down in its data – “not annualized” figures. And not annualized, GDP fell 9.5% from Q1:
Why use the annualized rate instead of 9.5%?

You know why...it looks more scary.
 
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