You got that sinking feeling, well you are not alone, first the good news comes out, then the revisions start, then finally reality. Next stop, reality. They can’t lie forever.
Obama on the skids — BUYER’S REMORSE: Obama approval rating drops to 40% in Ohio…
Now why would they have to do that? Think low information voters and the yippee factor you get with fudging the numbers. The soviets used to do the same thing.
Remember the key component of the Fed’s baffle with BS strategy: namely “baffle with BS.” Following yesterday’s epic trifecta of economic growth when durables, housing and confidence data all slammed expectations, it was up to GDP to be the bad cop. Sure enough, following the already disappointing first Q1 GDP revision which revised the preliminary 2.5% number to 2.4%, today economists were expecting an unchanged print. Instead they got a crash to 1.77%. And on what? Why the collapsing US consumer whose true colors have finally come out in the final Q1 GDP revision: responsible for 2.40% of the GDP print in the first revision, Personal Consumption Expenditures tumbled to just 1.83% of GDP. In absolute terms, PCE plunged from 3.4% to 2.6% on expectations of 3.4%. There goes the buying power of the overlevered, undersaved US consumer.