GDP Just Sucked, So Maybe That’s Good
“The U.S. economy has a strong labor force, excellent productivity and technology, and a deep and liquid financial market that is in the process of repairing itself.” -Bernanke January 2008
Another fun and prescient quote from “The Bernank” back in January 2008. You can see what the market did after His Majesty made that prediction. What an oracle.
Ben has taken rates to zero and there is no inflation. The TIPS market has given up two years of gains in a month.
Adjusted GDP just came in real light. it was just cut from 2.4% to 1.8%. Before you lose your mind about the market pulback, betting against Ben’s theory that things are rosy probably isn’t a bad play.