The Franchise Chronicles

Q3 GDP

dhurd — Fri, 29 Oct 2010 21:07:09 +0000

Alright, let’s start the betting (payable only in PM’s, of course)….

The line is set at 2% growth in the 3rd quarter (just the prelim release, it will be revised as we all know). We had prelim 2.4% in Q2 which was then revised by 33% to the downside, to 1.6%.

I am going to come in and take the under and say 1.7% which will be revised down to less than 1.25% after all is said and done.

Now, the reaaaaaaaaaaaaaaaaaaaal interesting tell for me will be the number, not because I care what fabrication comes out or what this life support system can sustain until our currency collapses, but because I think this has HUGE implications for the public perception of QE 2 (really QE 11 but who is counting at this point). You all know “they” could care less what the public thinks, but that is why this will be so telling to me.

If we get a number within spitting distance of 2% AND we still get some $T QE announcement next week, then the wheels have officially come off the wagon and for all to see. It will be Main Street obvious that “they” could not care less what rules/laws/regulation/perception, etc is, they are going to do what they want. Again, we all know that anyway but even they did not just invade Iraq, they made up nonsense to at least give the perception they were protecting us.

Place your bets folks.

a tail of 2 quarters

fk — Fri, 29 Oct 2010 19:55:09 +0000

I sat here and thought about what QE has done for me. Nothing.
What has it done for unemployment? Nothing.
What has it done for housing? Nothing.
What has it done for small businesses? Nothing.
Has it fixed any of our infrastructure problems? Nope.
Has it brought any of our troops home? Nope.
Has it lowered costs for citizens? Nope.
Has it stemmed foreclosures? Na.
Has it made our country more comp. on a global scale? Nope.

Are states and cities in worse financial shape than they were a year ago? Yes.
Are citizens getting access to credit? Nope.
Have bankruptcies declined in any meaningful way? Nope.
Job creation? Nope.
Is our currency being called into question? Yes.

What has QE done? And for whom? When you realize the answer to that question you realize how absurd QE 2 is viewed from the citizen’s standpoint. They are going to buy more “stuff”? From who? You? Me? Nope. Why not give me the money to pay my mortgage? Why are they relieving the banks of their responsibility as the ones that made the loans, and not alleviating any of the problems the citizens are having? If money is essentially handed out, who gets it, and why?

It is all a farce. This is a government of, by, and for the corporation. If we do not engage in QE 2, who does that really, I mean reallyyyyy, hurt? Me? How can it?