Posted on by Colin Twiggs

A Closer Look GDP Data | The Big Picture

By Barry Ritholtz

The GDP data this morning was a deep sigh of relief for those people who fear a recession may be coming. I don’t have that sense of relief. Perhaps its my own bias, but the details of the GDP report reveal not an organic growth period in a healthy recovering economy, but rather a tepid post-credit crisis expansion highly dependent on government largesse and Federal Reserve accommodation…..

via A Closer Look GDP Data | The Big Picture.

2 Replies to “A Closer Look GDP Data | The Big Picture”

  1. thanks so much for your hard work. I’m wondering what happens to the value of the AUD if there is a great contraction? Same as USD or something different? Any ideas?

    thanks for your time & attention, bill arcright

    1. Contraction generates uncertainty. Uncertainty leads investors to avoid risk. Investors withdraw to safety of the US dollar and gold. Relative pricing of these two items rises ….. which would mean the AUDUSD would fall.

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