Comments on: The Third Quarter Bump http://dailycapitalist.com/2009/08/30/the-third-quarter-bump/ Economics, Finance, and Investment Risk Fri, 19 Mar 2010 05:33:04 -0700 http://wordpress.org/?v=2.9.2 hourly 1 By: Q3 GDP: Proceed At Risk | The Daily Capitalist http://dailycapitalist.com/2009/08/30/the-third-quarter-bump/comment-page-1/#comment-3410 Q3 GDP: Proceed At Risk | The Daily Capitalist Fri, 30 Oct 2009 19:08:47 +0000 http://dailycapitalist.com/?p=1721#comment-3410 [...] Commerce Department announced Thursday that GDP grew 3.5% in Q3 2009. This is the “Third Quarter Bump” I had been [...] [...] Commerce Department announced Thursday that GDP grew 3.5% in Q3 2009. This is the “Third Quarter Bump” I had been [...]

]]> By: Stock Market Crashed in 1929; 80 years later some say we are in recovery « Symon Sez http://dailycapitalist.com/2009/08/30/the-third-quarter-bump/comment-page-1/#comment-3409 Stock Market Crashed in 1929; 80 years later some say we are in recovery « Symon Sez Thu, 29 Oct 2009 21:54:10 +0000 http://dailycapitalist.com/?p=1721#comment-3409 [...] by about 3.5%. How can that be? Some say we are in recovery while others say it can’t last.  Critics point out that there was about a 23% increase in durable goods and that the overall increase.... They point to the US government’s “cash for clunkers” program and that created a [...] [...] by about 3.5%. How can that be? Some say we are in recovery while others say it can’t last.  Critics point out that there was about a 23% increase in durable goods and that the overall increase…. They point to the US government’s “cash for clunkers” program and that created a [...]

]]> By: The Economy in Q3 | Froogalizer.com http://dailycapitalist.com/2009/08/30/the-third-quarter-bump/comment-page-1/#comment-3356 The Economy in Q3 | Froogalizer.com Tue, 29 Sep 2009 16:05:35 +0000 http://dailycapitalist.com/?p=1721#comment-3356 [...] at all. If one expects GDP to bounce back to pre-crash levels, then the recession is not over. I have written about the fact that fiscal stimulus will have an impact on the economy in Q3 and Q4. But when the [...] [...] at all. If one expects GDP to bounce back to pre-crash levels, then the recession is not over. I have written about the fact that fiscal stimulus will have an impact on the economy in Q3 and Q4. But when the [...]

]]> By: Jeff Harding http://dailycapitalist.com/2009/08/30/the-third-quarter-bump/comment-page-1/#comment-3295 Jeff Harding Mon, 31 Aug 2009 18:43:59 +0000 http://dailycapitalist.com/?p=1721#comment-3295 Good observation, Lloyd. Also, I enjoyed your comment on the teachers' response to the No Child Left Behind act. I'll bet they could solve all the education problems if we just gave them more money.;-) Good observation, Lloyd.

Also, I enjoyed your comment on the teachers’ response to the No Child Left Behind act. I’ll bet they could solve all the education problems if we just gave them more money.;-)

]]> By: Lloyd G. http://dailycapitalist.com/2009/08/30/the-third-quarter-bump/comment-page-1/#comment-3294 Lloyd G. Mon, 31 Aug 2009 10:54:50 +0000 http://dailycapitalist.com/?p=1721#comment-3294 Cash 4 Clunkers, First Time Homebuyers credit, stimulus and other bailout money all had an effect to be sure. All the TV pundits are saying "Yay!" Bernanke and Krugman have both credited their ideas with saving the world. Well... To put it in terms that the average layman can understand, what's happened in the US economy in the last 12 months is analogous to a guy who had a very good paying job. Our friend spent every penny he made. He borrowed as much as he could -- for a house, cars, vacations, etc. Banks loaned him the money because he had a good paying job, and he'd always paid his debts on time. His credit was good. He had a good life. One day the boss announced that their business was not doing very well. Everybody's hours and pay would be cut. All of the sudden there was less money. Our friend went home and discussed the situation with his family. What to do? Make cuts in the household budget? Give up one of the leased cars? One of his kids who did a book report on the John Maynard Keynes and the Great Depression in high school pointed out the obvious solution: Max out the family credit cards! Our friend did this and life was better than ever. The end. Cash 4 Clunkers, First Time Homebuyers credit, stimulus and other bailout money all had an effect to be sure. All the TV pundits are saying “Yay!” Bernanke and Krugman have both credited their ideas with saving the world. Well…

To put it in terms that the average layman can understand, what’s happened in the US economy in the last 12 months is analogous to a guy who had a very good paying job.

Our friend spent every penny he made. He borrowed as much as he could — for a house, cars, vacations, etc. Banks loaned him the money because he had a good paying job, and he’d always paid his debts on time. His credit was good. He had a good life.

One day the boss announced that their business was not doing very well. Everybody’s hours and pay would be cut. All of the sudden there was less money. Our friend went home and discussed the situation with his family. What to do? Make cuts in the household budget? Give up one of the leased cars? One of his kids who did a book report on the John Maynard Keynes and the Great Depression in high school pointed out the obvious solution: Max out the family credit cards! Our friend did this and life was better than ever.

The end.

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