BEHIND THE 3.3% GDP GROWTH BS

(h/t Barry Ritholtz at The Big Picture)


First of all, the calculation used an absurd number for the rate of inflation, 1.33%, instead of a more realistic number, perhaps 8%, as suggested by the Consumer Price Index.

Second, and even more bizarre, if we look at the results for the financial sector alone, it indicates that the profits grew by 27%. Yes, the same sector that saw Bear Stearns and Country Wide disappear.