(Thumbnail image from ITN)
The recession is over! Or maybe it’s not quite yet.
New numbers released by the U.S. government claim that the U.S. GDP is up 3.5 percent from last quarter. The news has some claiming that the U.S. is emerging out of the economic slump, but others see it as a false positive.
For more on the issue we have perspectives from FOX News, CNBC and CNN.
FOX News says they’re skeptical that the new GDP figures are anything to celebrate.
“You’re going to hear that from the mainstream media all day, the recession is over. That simply is not true. [...] You can have a comeback in any one quarter and the recession still continues. [...] How much from this 3.5 percent growth was from cash for clunkers? How much was from the first time homebuyers tax credit? How much was from government spending? All of these things are fleeting. Is this recovery sustainable? We can’t call an end to the recession, at least not yet.”
Financial executive Jack Albin tells CNBC it will take more than just raw dollar data to convince him the recession is over.
“If I look underneath the surface right now, I’m not seeing net new jobs created. I’m seeing fewer losses, and that’s improving our top line employment report every month, but I’m not seeing original jobs being created. [...] Small business has been pretty much passed over with all of the stimulus programs. That’s where we need to see jobs. That’s where we need to see sentiment improve, and we're not seeing that yet.”
CNN’s Susan Lisovicz says she thinks the report is a positive sign overall and examines the primary causes of the GDP boost.
“Investors like what they heard an hour ago. This report provides the strongest signal yet that the recession may be finally over. The U.S. economy grew over the past three months at the fastest pace in two years. One big reason why of course: all that stimulus dough from Uncle Sam. (Flash) It did what it was supposed to do: prompt us to spend on cars and homes.”
CNBC’s Sue Herera says in the end, it does not matter to the market what caused the increase. It's just important that it did.
“The market doesn’t seem to care, Steve, whether or not it’s the cash for clunkers and the tax credits and the like. They’re taking it as the sign that the recession has ended, that the economy is certainly on the mend.”
So what do you think? Are the new GDP numbers enough to say we’re out of the recession and do you care what's causing the markets to rebound?
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