Grim FINdango: Q1 GDP Forecast QFalls To 1.2 Percent On Collapsing Construction

The Atlanta Federal Reserve disturbed quite a few folks where it announced that Q1 Real GDP growth is forecast to beĀ an abysmal 1.2 percent.

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The Atlanta Fed provided a spreadsheet of the breakdown (or evolution) of the Q1 GDP forecast: GDPTrackingModelDataAndForecasts

What sticks out like a sore thumb is Fixed Investments: Structures.

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It is indeed a Grim FINdango for the commercial real estate market.

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S&P500 Index Continues To Climb As World GDP Forecast Plunges And Atlanta Fed Says Q1 Real GDP Grew At 1.2 Percent

Time to queue the ship’s band to play “Nearer My God To Thee” from the film “Titantic.”

The S&P 500 index has continued to climb over the past year as the World GDP Forecast YoY continues to sink (like The Titanic).

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And now the Atlanta Fed has joined the Titanic band and is playing a mournful tune of … Q1 2015 Real GDP growth of 1.2 percent.

gdpnow-forecast-evolutionAnd up on Constitution Avenue, The Federal Reserve swings into action!

Fortunately, Central Banks have flooded the globe with liquidity.

Maybe the Hindenburg Omen should be renamed The Titanic Omen!

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“Lookout, do you see any icebergs ahead in this tranquil sea of liquidity?” “No Captain Yellen. Ocean is as still as a mill pond.”

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Q4 GDP Rose Less Than Previously Thought (Down 60 Percent From Q3), Growth Slows Where My Government Grows

Well, ain’t that a kick in the head.

Q4 GDP rose at a 2.2 percent rate, a downward adjustment from the preliminary estimate of 2.6 percent.

gdpq4sNotice how GDP growth have been declining since 1950 (16.9 percent QoQ) to Q4 2013 (2.2 percent QoQ). Now QoQ GDP growth is down 60 percent from Q3 to Q4 2014.

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As the Edison Lighthouse once sang (sort of ), growth slows where my government grows.

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Personal consumption expenditures grew at 4.2 percent QoQ, tying the highest rate since The Fed began their massive intervention.

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Here is the breakdown of the Q4 GDP numbers.

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What did Americans spend their money on? HEALTHCARE! (I am using a chart from Zero Hedge since I have to head to the hospital for my knee arthroscopy.

persona spending Q4 revised_0

Let’s see if The Federal Reserve and Janet Yellen have any tricks up their sleeves in their Little Green Bag.

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