Stocks Down as GDP Grows Just 1.3 Percent

Friday, July 29, 2011

Traders work on the floor of the New York Stock Exchange. (Ramin Talaie/Getty)

According to new data from Commerce Department Friday, the U.S. economy grew at a dismal rate of just 1.3 percent, significantly lower than the 1.7 percent that had been expected. The new figures show the weakest period of growth since the recession officially ended. Some economists fear that the debt ceiling debate in Congress will produce cost-cutting measures that will slow the economy further. As the August 2 deadline to raise the debt ceiling approaches, it is unclear whether Congress will be able to pass a plan.

Charlie Herman, economic editor for The Takeaway and WNYC, digests the latest figures and predicts what they will mean for the markets.

Comments [2]

Angel from Miami, FL

The jobs are gone. There's no such thing as auditing. Cut your labor force and share prices go up. It's an illusion. The money saved will go to management, lobbying, and advertising. Advertising is like special effects in movies - it looks flashy and people love it but it doesn't make it less of a flop. Lobbying helps fill the corporate deficit with government subsidies and breaks and incentives. This is our reality: making money with money. Illusion is the intangible glue that binds it all. When it all falls apart, as it always will, those playing the game will have amassed enough to buffer themselves. Those being played will pay the price and carry the cost. Everyone will then take their places for the next go-around... rinse, repeat. The only lesson learned is how to better mask the greed in the new scheme. (I just went to a dark place, didn't I?)

Jul. 29 2011 02:48 PM

i as everyone else have been listening to and been involved in one economic crisis after another these past few years. if i remember corresctly we gave a lot of money to "lenders"-yet they are not lending. it seems to me that recession hinges on constricting the flow of money. no investment no job growth. the question is -why would any body lend money when the interest rates are so low they would not make a profit and in fact may not break even -and have added risk. also why would any investor be interested--extremely low interest rates are at fault now. perhaps they helped in the short term at the beginning-but now we need realistic interest rates so the lenders will become interested

Jul. 29 2011 10:45 AM

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