Leading Economics Blog: US Economy Already In Recession

Thanks Barack.
Forget the ifs, ands or buts… According to the top economics blog on the internet the US economy is already in recession.
The Economy Quietly Entered A Recession On Friday
Tyler Durden at Zero Hedge reported:

While the key market moving event from last Friday may have been Bernanke’s Jackson Hole speech which merely left the door open to future QE episodes, the most important event from an economic standpoint was the first GDP revision Q2, which dropped from preliminary 1.3{c18972fae7bad54fccba2a5109f73c6e4ffe73508739d7249e14c4c49d351322} to a sub stall speed, in real terms, 1.0{c18972fae7bad54fccba2a5109f73c6e4ffe73508739d7249e14c4c49d351322}. What is just as important is that as the following chart from Bloomberg demonstrates, the YoY change in real GDP, which is now at 1.5{c18972fae7bad54fccba2a5109f73c6e4ffe73508739d7249e14c4c49d351322}, is a slam dunk indicator of recession: “Since 1948, every time the four-quarter change has fallen below 2 percent, the economy has entered a recession. It’s hard to argue against an indicator with such a long history of accuracy.” Bernanke agreed that “growth has for the most part been at rates insufficient to achieve sustained reductions in unemployment.” And while Bernanke is shifting dangerously into Greenspan territory with the open-ended interpretation of his statement, another thing that is more actionable is the observation that virtually every time real YoY GDP has dropped below 1.5{c18972fae7bad54fccba2a5109f73c6e4ffe73508739d7249e14c4c49d351322}, this has led to a negative nonfarm payroll number. Granted, the result may not be as shocking as what the Philly Fed implied vis-a-vis this Friday’s NFP, but we believe a subzero print in the August labor report will convince the three Fed holdouts that the time for yet another monetary intervention is here (Arab Spring part deux consequences be damned).

And, here are the latest micro-economic charts that tell the real story behind the Obama economy.

Scary stuff.

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