GDP

Ooops. GDP (gross domestic product, the measure of all the goods and services and an indicator of whether the economy is growing or contracting) came in at a much lower than expected 1.3%. This number is highly subject to revision so we'll not know the final number in a month or so. Either way, this seems to be suggesting a serious deceleration in economic growth. But here's the kicker. Another measure in the report was of inflation which exceeded expectations.

Let's see. What do they call that? I know there's a word for it ...... ah ..... hmmmm ... it's on the tip of my tongue. I KNOW. Got it. STAGFLATION.

Update: The GDP number was made up of an astonishing 71% consumer spending, and was basically the only area of the economy that is growing. You really have to wonder just how long consumers can keep spending given the reverse wealth effect of housing.