GDP Contracted 0.075% in the Third Quarter

That’s because the reported 0.3% is an ANNUALIZED rate.

Actually, it’s a 0.0749158% contraction if you consider compounding. I’m sure readers appreciate the rounding.

So according to Uncle Sam’s Bureau of Economic Analysis, the value of all goods and services produced in the economy during the quarter ended September 30 was, in real terms, on a seasonally adjusted basis, and subject to revision, 99.925% of the value of all goods and services produced in the economy during the quarter ended June 30.

Let the wailing and gnashing of teeth begin.

Watch how many media reports fail to report that minus 0.3% is an annualized rate.

Regardless, the purveyors of the POR (Pelosi-Obama-Reid) Economy and their media friends have gotten the negative number they so longed for in hopes of influencing the presidential election. Nice work, guys; you must be REALLY proud.

I am not pleased to report that I predicted this result on July 3.

Chuckie Schumer scheduled a press conference two weeks ago in anticipation of this Aramageddon-like event so he could promost another round of “stimulus.” I’d say that gas prices falling 50%, largely because President Bush and the Republicans in Congress finally got off their butts and insisted on allowing offshore drilling (affecting worldwide oil-supply expectations) is stimulus enough.

Schumer has no shame. You could make a case that his antics with IndyMac Bank might be responsible for a large portion of the GDP drop.