GDP Deflator
July 31st, 2008 by 
reality
Why did GDP show a 1.9% gain in the second quarter? It wasn’t the stimulus package. According to Bill Fleckenstein today, it was a 1.1% deflator (implied inflation rate). Now I’m a deflationist, but that is ridiculous.
Posted in Government, Inflation & The Dollar, The Economy | 
August 1st, 2008 at 6:11 pm
First Priority Bank failed this weekend. That makes eight banks (not counting Bear Stearns, Fannie or Freddie) so far this year and four to go to match 2002’s number of twelve failed banks.
http://www.fdic.gov/bank/individual/failed/banklist.html
August 2nd, 2008 at 5:53 am
The effect of the mechanistic application of the GDP formula is a bit mind boggling - a nominal decline in GDP of -11.6% (from Q1 $119.6 billion to $105.7 billion) becomes a 111% increase in the ‘real’ annualized rate of growth (from Q1 0.9% to Q2 1.9%) - seems like we need a new methodology, measure or both.
August 2nd, 2008 at 6:05 am
Actually you are talking about the decline in the increase in nominal GDP, not an actual fall in nominal GDP. But your point is taken.