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The 1st Quarter 2014 GDP Number

15:27-18:20 The first quarter GDP was up just 0.1% in the first quarter and the weather was blamed for the poor economic performance. Cold weather can't derail an entire economy. Recent tornados in the south may also be blamed for a lack of 2nd quarter GDP growth, although Keynesians might argue that tornados might lead to economic growth as homes will need to be rebuilt. Discussion of the Fed and media spin on the poor numbers:

From CNBC:

"Yet the Fed statement did not reflect substantial concerns and in fact agreed with consensus from economists who believe the slowdown will be short-lived and growth will accelerate."

From the FOMC statement:

"Information received since the Federal Open Market Committee met in March indicates that growth in economic activity has picked up recently, after having slowed sharply during the winter in part because of adverse weather conditions."

Even though initial jobless claims are up, home sales are down, twenty percent of homes have no one employed , homeownership rates are down, there is a rise in food stamp usage, mortgage applications are down and new home construction is down, the media persists on peddling an economic "recovery" story.

From Reuters:

"U.S. consumer spending recorded its largest increase in more than four and a half years in March, cementing views the economy ended a dismal first-quarter on solid footing."

Podcast notes:

http://smaulgld.com/astonishing-persistent-denial-economic-reality/

http://www.youtube.com/embed/xtvKeivGjrs&feature=youtu.be

#housing