2013: We Are Witnesses To A Grand Disconnect Of Hope/Perception From Reality AGAIN Like 2007
January 30th, 2013
SHOCK: U.S. ECONOMY SHRINKS As DOW Is Flirting 14000.
GDP Shows Surprise Drop for U.S. in Fourth Quarter
The U.S. economy posted a stunning drop of 0.1 percent in the fourth quarter, defying expectations for slow growth and possibly providing incentive for more Federal Reserve stimulus.
The economy shrank from October through December for the first time since the recession ended, hurt by the biggest cut in defense spending in 40 years, fewer exports and sluggish growth in company stockpiles.
The Commerce Department said Wednesday that the economy contracted at an annual rate of 0.1 percent in the fourth quarter. That’s a sharp slowdown from the 3.1 percent growth rate in the July-September quarter.
Dow flirts with 14,000
NEW YORK — Stocks may be near record highs, but they are not terribly expensive, at least by one measure.
Last week the broad Standard & Poor’s 500 index closed above 1,500 for the first time in five years. This week the Dow Jones industrial average has been flirting with 14,000, a level it hasn’t seen since October 2007.