First quarter GDP retreated faster than expectations: 6.1% decrease
To review, the Bureau of Economic Analysis releases 3 GDP reports: Advance, Preliminary and Final. The report released today was the Advance report, so it could be subject to considerable revisions in following estimates.
In hindsight, an economy dropping 600,000 jobs a month can't be expected to turn on a dime. I also noticed that the investment component of the report continues to drop.
As for the market, I was quite wrong Monday. Buying then would have been a good idea.......but I guess that works if you sell soon. The Dow and the S&P 500 are moving higher by over 2%, what can the Fed say this afternoon to possibly justify this?
Oh yeah, just to compound my consternation: Bank of America & Citi need several billions of new capital according to several reports. Is the rumor about 16 banks tested for stress needing more capital on target? Of course, financial stocks are moving higher too.
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Bloomberg News reported that at least 6 of the 19 banks that were stress tested need additional capital.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aiz06xRmmeOQ&refer=home
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