Thursday, October 29, 2015

US Economy Comes To A Screeching Halt; GDP Collapses -- Reuters -- October 29, 2015

GDP, Reuters is reporting --
U.S. economic growth braked sharply in the third quarter as businesses cut back on restocking warehouses to work off an inventory glut, but solid domestic demand could encourage the Federal Reserve to raise interest rates in December.
Gross domestic product increased at a 1.5 percent annual rate after expanding at a 3.9 percent clip in the second quarter, the Commerce Department said on Thursday. 
The spin comes in the next paragraph:
The inventory drag, however, is likely to be temporary and economists expect growth to pick up in the fourth quarter given strong domestic fundamentals.
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Jobs 

Speaking of spin: "applications barely rise." Monthly average falls to 42-year low.

The numbers:
  • actual: 260K
  • consensus: 263K
  • previous: 259K 
From another source with a lot of blog advertising:
Today's seasonally adjusted 260K new claims was slightly better than the forecast of 263K.
The four-week moving average is at 259,250, down from last week's 263,250, is at a new low last seen in 1973.
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ObamaCare

ObamaCare stories coming out fast and furious as:
  • open season begins
  • becomes clear that things are not going well
  • even President Obama is defunding the ObamaCare co-ops, something the GOP could not do (previously reported); nearly half (eventually, "more than half") of the co-ops will shut down (this was Big Health's plan all along)
By the way, it's not hard to connect these dots:

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