Submitted by Tyler Durden on 02/29/2012 08:46 -0500
Ben Bernanke
Central Banks
European Central Bank
fixed
Gross Domestic Product
Personal Consumption
Back on January 27, before the impact of the trillions in liquidity injections by the central banks was fully appreciated, the advance Q4 GDP print came in below estimates of 3.0%, printing at 2.8%. Today, we just got the flip flop to that, after the second revision just printed at 3.0%, on expectations of an unchanged print at 2.8%. The reason: a fine-tuning, whether seasonally adjusted or not, which improved 4 of the components of Q4 GDP (Fixed Investment, Personal Consumption, Imports, Government Expenditures), while reducing two (Inventories and Exports) nominally. Net result, a slight bump from 2.8% to 3.0% for the second Q4 GDP print. The final GDP revision will be made public on March 29 - if history is any precedent, it will be back down to 2.8%. As for the reason why the market is less than delighted with this "beat" is that with EUR Brent at record highs, courtesy of everyone else but primarily the ECB doing the equivalent of QE 3 in 2011's biggest deception play, it firmly take the Fed's punchbowl away at least for 3 months. More at 10 am when Bernanke testifies.
chart
http://www.zerohedge.com/news/following-fine-tuning-second-print-q4-gdp-lifts-it-back-initial-estimate-30?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29
a few comments,,,,,,,,,,,
LawsofPhysics
LawsofPhysics's picture
GDP will be made to be whatever it needs to be to maintain proper perception and control. Move along. Look at how much of that GDP is already simply paper pushing compared to the creation of real tangible products that will make life better for everyone.
There is a very real cost for creating captial without adding any real value to the economy. Fiat deaths are never pretty and impossible to time. Get physical and sleep well.
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Wed, 02/29/2012 - 09:12 | 2207590 SheepDog-One
SheepDog-One's picture
Someone is going to start a wave of selling the top here. Same thing as the last bubble top, it was all predictions of how the DOW would soon be at 20,000, CNBC guys elbowing each other in the face to up the target, and sunshine and unicorns everywhere. $4 gas nationwide now....just sayin'.
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Wed, 02/29/2012 - 08:51 | 2207530 transaccountin
transaccountin's picture
All that fiat printing was so worth it!
By election time we will have spent 6 trillion in fiat hopioum to get a 3% GDP, ROFL.
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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