Asset Junkie ! dot Com

By Ava E. Williams

It is official. The recession is over. This morning’s prelimiary Q3 GDP report came out and hoots and hollers filled the trading floor. Cries of “It’s over!” and “Sucks to be you, Goldman!” rang like joyful wedding bells. GDP came out a whopping +3.5%, stronger than the market consensus and most importantly positive, signalling an end to an ugly economic era.  The upturn in GDP primarily reflected increases in personal consumption, private inventory investments, imports/exports and residential fixed investments. Growing personal consumption is a huge and somewhat unexpected positive for our economy, as the waning labor market has caused many a concern that fewer employed must mean fewer purchases. As for the Goldman slander, Goldman’s reputable economists hastily lowered their Q3 GDP forecast yesterday, citing weaker shipments and durable goods of late as reasons why GDP would miss it’s >3% target.  As potent as Goldman is, we’re incredibly relieved their forecast was off.  Though this is only the first Q3 GDP reading (we still have two more readings to go), will let out a big sigh of relief in the meantime.  And perhaps…just for fun…let out one more blissful “Sucks to be you, Goldman!”