I woke up and read this article on Bloomberg this morning. Did I wake up in Loony Toons land? This article reads like Daffy Duck wrote it. Have a read of the article it is just ridiculous the way it reads.
Why the GDP Drop Is Good for the U.S. Economic Outlook
By Peter Coy May 29, 2014
The U.S. economy shrank at a 1 percent annual rate in the first quarter, but the red ink isn’t nearly as scary as it looks. In fact, the downward blip sets the U.S. up for strong growth in the current quarter covering April to June. “As far as terrible reports go, GDP wasn’t too bad,” reads the headline on the report today by Michael Feroli, chief U.S. economist of JPMorgan Chase (JPM).
There were some not-so-good figures in the report. Corporate profits fell at a 9.8 percent annual rate, the biggest decline since the 2007-09 recession. “Our guess is profits rebound in Q2,” Steve Blitz of ITG Investment Research (ITG) wrote to clients.
