On the last Friday of each month following a quarter-end, we get the advance estimate of GDP growth in the past quarter. For the third quarter, the final estimate was 1.8%. For the fourth quarter, which was just announced this morning, GDP growth was 2.8%. While that was a substantial improvement, the market was expecting 3% . . . thus, a disappointment.
Closer examination reveals the shortfall was in government spending, which is not altogether a bad thing. While it is not yet clear, the suspicion is that it was mostly Defense spending, which is not altogether a good thing. Still, with the U.S. spending more on defense than the next twelve largest spenders combined, maybe it is time.
Nike says "Just Do It."
I say "Remember the Nike Swoosh," as that is the shape of our economic recovery, i.e., a long slow recovery . . . but definitely a recovery.
Closer examination reveals the shortfall was in government spending, which is not altogether a bad thing. While it is not yet clear, the suspicion is that it was mostly Defense spending, which is not altogether a good thing. Still, with the U.S. spending more on defense than the next twelve largest spenders combined, maybe it is time.
Nike says "Just Do It."
I say "Remember the Nike Swoosh," as that is the shape of our economic recovery, i.e., a long slow recovery . . . but definitely a recovery.
