GDP Update

Barry explains why GDP (I posted about it previously) is worse than the headline number (those headlines again):

Yesterday we learned that in Q1 2007, the economy expanded at the near zero growth pace of 0.15%. That's practically flatlined. This was the worst reading since a 0.2% increase in Q4 of 2002.

What's that, you ask? In the media, GDP was reported at 0.6% you say? Um, no -- that's the annualized rate -- take Q1 GDP and go mulitple it 4X and THAT's how you get to a still pitiful 0.6%.

Add in inflation, and the GDP number shows we're already in a recession.