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HomeContinuing Consumer Contraction Points to Accelerating Double Dip
Posted by Larry Doyle on July 27th, 2010 6:10 AM |
2nd quarter earnings are certainly coming in stronger than expected, and our equity markets are having a solid rebound this month. Are these earnings reflective of real underlying strength in the economy or corporations that are now operating more efficiently?
Has our economy hit a soft patch? Is it declining? Are we rebounding from a recent downturn? Might we experience a real double dip?
The initial reading of 2nd quarter GDP is due this Friday. To say that it is highly anticipated would be a huge understatement. Consensus expectations for 2nd quarter GDP are running between +2.5% and +3%. Recall that the final 1st quarter report registered a +2.7% reading.
A Sense on Cents favorite has a decidedly different view of 2nd quarter economic activity and the subsequent GDP. (more…)
