The Bureau of Economic Analysis released its Advance Estimate of 3rd Quarter GDP, and Wall Street was not pleased. A 2.8% annual growth rate was slightly below expectations, leaving them hopeful there would be an upward revision down the road.
Still, corporate media took comfort that consumption apparently stayed strong.
As long as people are willing to spend money, Wall Street is content.
Should Wall Street be content? No. The GDP numbers are not disappointing—they are alarming. The “disappointing” growth obscures a very real investment deficit in the third quarter.
In the third quarter, investment growth went into an economic black hole.
Wall Street looks at 2.8% Real GDP growth and considers it a “disappointment.” I look at 0% Real Gross Private Investment growth and consider it downright alarming.
Watch the podcast to learn why!
Links to material presented in the podcast:
Investment Breakdown
https://fred.stlouisfed.org/graph/?g=1xmOlGovernment Spending
https://fred.stlouisfed.org/graph/?g=1xkL9Exports and Imports
https://fred.stlouisfed.org/graph/?g=1xm1bConsumption of Goods
https://fred.stlouisfed.org/graph/?g=1xmOLComponents of Personal Income
https://fred.stlouisfed.org/graph/?g=1xmtbPersonal Income Ratios Indexed
https://fred.stlouisfed.org/graph/?g=1xmOYGDP Components Under (Biden-)Harris
https://fred.stlouisfed.org/graph/?g=1xmR2
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