Third quarter annualized GDP growth expectation met (3.5%)

And the Dow Jones rallies 200 points.

First,
Taxpayers paid $24,000 per car:
http://money.cnn.com/2009/10/28/autos/clunkers_analysis/index.htm

This is based on taking normal sales projected before the end of 2009, and subtracting it from the number sold under Cash for Clunkers, because they would have happened anyway. You are left with $24K for each extra car sold with the help of this legislation that otherwise would not have been sold. But why such a big sacrifice?

The big aspect of our current crisis situation is an intense psychology game. These sales helped to drive the GDP growth to levels where the media whores could enthusiastically say, "YAY THE RECESSION IS OVER!!" (Take a moment to think here about why this is important.)

Anyhow here is the chart for what Cash for Clunkers actually did to sales.
CHART OF THE DAY: Cash-For-Clunkers MASSIVELY Distorted GDP:
http://www.businessinsider.com/chart-of-the-day-motor-vehicle-output-2009-10

Finally, here is a good article about the whole thing.
GDP Is..... Better Than Expected?:
http://market-ticker.org/archives/1550-GDP-Is.....-Better-Than-Expected.html

Bottom line:

Quote :

Current-dollar personal income decreased $15.5 billion (0.5 percent) in the third quarter, in contrast to an increase of $19.1 billion (0.6 percent) in the second.

Personal current taxes increased $4.8 billion in the third quarter, in contrast to a decrease of $119.1 billion in the second.

All numbers are cooked and manipulated. I don't understand why they show us bad ones (like U-6) maybe even that one is overly optimistic. That's a thought, the ones that we think are really bad are much worse.

ramallamamama wrote:

All numbers are cooked and manipulated. I don't understand why they show us bad ones (like U-6) maybe even that one is overly optimistic. That's a thought, the ones that we think are really bad are much worse.

Amen...

ramallamamama wrote:

All numbers are cooked and manipulated. I don't understand why they show us bad ones (like U-6) maybe even that one is overly optimistic. That's a thought, the ones that we think are really bad are much worse.

I am just wondering how much longer they can hide the fact that we are not experiencing a recovery, but rather a massive transformation that will most likely lead to a "phase 2" market crash in the next year or two.



The rally through April of 1930 looks similar to what we currently have right now. You all know what happened after that.

I don't think the public is ever going to see through the Financial Simulacrum.... it's quite astounding to watch. They're so many financial vector leaders out there keeping the publics perception managed, that I think there is little hope of anyone breaking through.

Now, check this out. The following Dow chart compares the Dow (1900 - Present) to an inflation-adjusted Dow (1925 - Present). Its interesting to see the real wealth the market generated after the 1913 central bankers extracted their cut from the system. (the olive green line is market value after inflation). It appears the real wealth extraction started after the "end of World War II."



Note: Check out 1982- 2000... we had a real run upward during that period, with the inflation-adusted numbers growing around the same pace as inflation unadjusted.

so what meme is beyond the veneer of simulacrum?