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(Marketwatch)   GDP numbers confirm the US economy shrank in the first half of 2022. One could say it even ...recessed   (marketwatch.com) divider line
    More: News, Unemployment, Dow Jones Industrial Average, Monetary policy, Inflation, Macroeconomics, Economy of the United States, Great Depression, high inflation  
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473 clicks; posted to Business » on 29 Sep 2022 at 4:35 PM (17 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



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View Voting Results: Smartest and Funniest

 
2022-09-29 3:36:04 PM  
8 votes:
This is bad news.....for Obama.
 
2022-09-29 4:40:57 PM  
6 votes:
i.pinimg.comView Full Size
 
2022-09-29 5:27:46 PM  
5 votes:
There is no recession. C'mon man!
 
2022-09-29 5:48:46 PM  
5 votes:

Gaddiel: They wanted to curb inflation. Well they succeeded!

I don't think I've ever been in a manufactured recession before. From what I'm seeing though, it seems like demand is still high but there have been chronic supply issues.


Demand is very high for a lot of things, that's why prices are high!  Why does NO ONE understand supply and demand?

When demand suddenly spikes it takes a long time to get everything increased so the supply is high enough to match.  Covid did that.  People changed their ways on a LOT of things super quick.  Unfortunately for a lot of things, they changed their ways to match supply but because that takes a while, demand tanks and now there's all this extra crap no one wants and that increases prices further with all this wasted inventory and money spent.

Add in catastrophic droughts (and a war) causing food prices to skyrocket and you have super high prices for things.

/If you want a very crystal clear example... people's appetite for chicken wings spiked wildly during the lockdown.  Demand was WAYYYYYY up.  As a result, prices skyrocketed too.  But then everyone saw how expensive they were and cut way back and/or switched to boneless wings.  As a result, demand tanked for wings, and now they're basically back to the same price they were before covid.  Everyone blamed 'supply'... I mean, yeah, technically they couldn't meet the sudden increase but the problem lies in demand.  Course no one wants to hear that.
//Same with air travel.  People were locked down for 2 years and now they want to vacation all over the place.  As a result, demand for air travel is even higher than it was before covid.  Adding pilots, which require literally thousands of hours of training, is not a quick thing.  It's not really a 'labor' or 'supply' issue here, it's a sudden massive increase in demand that's the problem.
 
2022-09-29 5:43:51 PM  
4 votes:
Fark user imageView Full Size


This is unsustainable.
 
2022-09-29 5:50:29 PM  
3 votes:

jake3988: Gaddiel: They wanted to curb inflation. Well they succeeded!

I don't think I've ever been in a manufactured recession before. From what I'm seeing though, it seems like demand is still high but there have been chronic supply issues.

Demand is very high for a lot of things, that's why prices are high!  Why does NO ONE understand supply and demand?

When demand suddenly spikes it takes a long time to get everything increased so the supply is high enough to match.  Covid did that.  People changed their ways on a LOT of things super quick.  Unfortunately for a lot of things, they changed their ways to match supply but because that takes a while, demand tanks and now there's all this extra crap no one wants and that increases prices further with all this wasted inventory and money spent.

Add in catastrophic droughts (and a war) causing food prices to skyrocket and you have super high prices for things.

/If you want a very crystal clear example... people's appetite for chicken wings spiked wildly during the lockdown.  Demand was WAYYYYYY up.  As a result, prices skyrocketed too.  But then everyone saw how expensive they were and cut way back and/or switched to boneless wings.  As a result, demand tanked for wings, and now they're basically back to the same price they were before covid.  Everyone blamed 'supply'... I mean, yeah, technically they couldn't meet the sudden increase but the problem lies in demand.  Course no one wants to hear that.
//Same with air travel.  People were locked down for 2 years and now they want to vacation all over the place.  As a result, demand for air travel is even higher than it was before covid.  Adding pilots, which require literally thousands of hours of training, is not a quick thing.  It's not really a 'labor' or 'supply' issue here, it's a sudden massive increase in demand that's the problem.


This is why I love the business tab, so many people explaining the most basic economic ideas as if they are geniuses and no one else knows them
 
2022-09-29 5:02:22 PM  
2 votes:
So far it seems to be only a recession for the very wealthy who normally have their snouts first in the trough for when the Fed is doling out cheap money.
 
2022-09-29 5:35:56 PM  
2 votes:
Time to bail out the elites.

THE ENGINE MUST TURN!  Grind the plebes into grease and fuel for the engine if needed.  And it is needed, so the elites can be comfortable.
 
2022-09-29 8:24:29 PM  
2 votes:

dsmith42: Had back to back fecessions


Way worse than a normal recession.
 
2022-09-29 4:37:34 PM  
1 vote:

Walker: This is bad news.....for Obama.


The finger pointing begins!
 
2022-09-29 4:40:50 PM  
1 vote:
They wanted to curb inflation. Well they succeeded!

I don't think I've ever been in a manufactured recession before. From what I'm seeing though, it seems like demand is still high but there have been chronic supply issues.
 
2022-09-29 4:41:47 PM  
1 vote:
So what if it did?
 
2022-09-29 6:21:46 PM  
1 vote:

Gaddiel: They wanted to curb inflation. Well they succeeded!

I don't think I've ever been in a manufactured recession before. From what I'm seeing though, it seems like demand is still high but there have been chronic supply issues.


These figures refer to January through June of 2022. The first big rate hike wasn't until May, which is late enough that it's not going to have any effect on GDP through June.

Economic growth is measured in real GDP, which means you have to calculate both nominal GDP and inflation over a period. Nominal GDP obviously grew incredibly fast: Nominal GDP grew by 9.6% in Q2 2022 ($25.248T) compared to Q2 2021 (23.047T)

The question was whether it grew faster than inflation - and the figures confirm that it did not.

That means these figures strengthen the justification for rate hikes as the correct action to take, because it's high inflation causing real GDP to drop, not a drop in nominal GDP. If anything, this data says these rate increases should have come sooner.
 
2022-09-29 7:33:43 PM  
1 vote:

Red Shirt Blues: Troy McClure: A recession with no job losses is the damnedest thing I've ever seen.

It's early yet.


Average recession is 11 months.
 
2022-09-29 9:49:45 PM  
1 vote:
but of course if the reality is, the values and prices were all bs over inflated, then it's not a recession, but a correction.
 
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