Federal Reserve Predicting 5.4% GDP Growth in Q1

The economy is on track to put up blockbuster growth numbers in the first quarter, according to the latest forecast from the Atlanta Fed.

GDP is expected to surge 5.4 percent to start 2018, the central bank branch estimated in its latest rolling look at how the economy is progressing.

If the forecast holds, it would be the best quarter since the Great Recession ended in 2009. The previous highest was third quarter of 2014, which hit 5.2 percent.



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Yep, the NY Fed makes their estimate and the Atlanta Fed makes theirs. Notice that the estimate you're quoting is for the entire year and the one I'm quoting is for Q1. But you're so eager to rain on the economic parade of good news you just bypass that fact.

Now, with unemployment at a 17 year low, with millions of workers getting bonuses, with tax cuts giving people more spending money, with wages rising, with corporations investing millions of dollars in new equipment and expansion thanks to the tax reforms, do you really think growth will just putter along at basically the same tepid rate that's it's been at recently?

I think the Atlanta Fed is correct and the NY Fed is wrong.

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Once again we have not had millions of people getting thousands of dollars worth of bonuses, across the board tax cuts, record low unemployment, corporate tax rate reduction, and soaring consumer confidence, etc., all happening simultaneously. That is a recipe for consumption of goods and services. That is what causes economic growth.

And the prediction was for the first quarter, not the full year.




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Not a long term trend, just a reaction to rising wages possibly creating inflation. A buying opportunity as stocks are on sale.

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That was Wednesday's irrational reaction. LOL.

Yes. This idea that a currency can be created from literally nothing, somehow given legitimacy, an exchange created, trades made, and value assigned is fascinating.

I've often thought that a currency could be created from preserved maple leafs of various colors that are dried and pressed flat in books. Yellow leaves are worth $10, red leaves $50, and orange leaves $100. Let's open a maple leaf currency exchange house!



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I hope you've got the appropriate license and permit to use those maple leaf currency manipulation tools!



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Ha ha ha!

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