2Q09 = 4th Qtr of Declining GDP

MarketWatch reported this little gem on Sunday: GDP Declines for 4th
Consecutive Qtr
<http://www.marketwatch.com/story/gdp-set-for-4th-straight-decline-econo
mists-say-2009-07-26>

The story goes on report that the last time this happened was during the
great depression.

The math says that we have to experience an explosion of economic
growth, not Gov't related, for GDP to catch up to the burgeoning
deficit. But reality says that is not going to happen.

Why? That is a VERY good question.

1. The consumer (70% of GDP) is still cutting back.
2. Financial losses have not been recognized and priced into the
market
3. Consumers + Businesses are waiting to see what legislation
passes before they spend any cash
4. Continuing Federal Deficit as tax revenues decline

Tighten up your belt Chuck; this winter is going to be long and cold.