This is just the beginning. Consumer confidence has already plummeted sharply after the massive Obama tax increase kicked in at the beginning of January and now the grim news is coming in from the fourth quarter of 2012. It’s all so … unexpected!
Growth in the U.S. economy turned negative in the fourth quarter for the first time since the last recession, dragged down by a reversal in military spending, lower inventories and falling exports. The U.S. contracted by a 0.1% annual rate in the final three months of 2012, based on the first of three readings by the Commerce Department. Economists surveyed by MarketWatch had forecast a 1.0% increase.
Well, those economists have a perfect record. They’re wrong every time.