Tuesday, December 22, 2009

GDP Revised Down Again: Why Believe In The Lies?

The U.S. GDP was revised down, again. The Commerce Department reported its third estimate for third-quarter GDP at a 2.2% annual rate, below the 2.7% rate economists had expected the number to be revised to.

It was the second downward revision to the figure, which was cut to 2.8% last month from an originally reported amazing 3.5%.

That 3.5% led to significant stock market gains. Today, with the downward revision, the markets are... up again.

The same type of problem happens with unemployment rates, which are based on expected death model and other such estimates, often profoundly incorrect.

Why anyone would choose to believe or pay attention to these numbers is amazing.

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