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Better Than Expected GDP

Yesterday we had the release of the second quarter GDP (gross domestic product) number and the it was up from where the analysts was expecting it to be. The analyst forecast had it at 2.7%, but when the report came out it (and it was an updated number) it was 3.3%. I’ve never like the GDP to be used to gauge the condition of our economy. For the last 13 years there has been another report that was put together to better gauge the economy, It referred to as the GPI (genuine Progress Indicator) which is a topic that I wrote about last month. To better understand why I say this please read my post on GDP (Gross Domestic Product) Vs GPI (Genuine Progess Indicator)
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The latest talk now is that the recession is a thing of the past. The economy is turning around and is expected to improve from here. The initial claims report came out also to help reinforce this assumption. The claims report’s number was 425,000 for the week ending Aug. 23, down from the week before of 450,000. I’ve always laughed at this report because it only tells you how many people have filed a new unemployment claim. What it doesn’t tell you is how many people who are without work didn’t file. If someone claimed benefits earlier this year and went back to work for only 4 months, then they are not eligible to file again.
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I believe that it depends on who you ask about the economy. The foreclosure issue still has not shown it’s whole ugly face and there are a lot of people out of work at the same time.

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