In January, the Q1 GDP, we were breathlessly told, would rise about 2.6%? Well, the final Q1 GDP revision is in: -2.9%. That’s well below the -1.8% expected and it’s the worst since Q1 2009. The big driver was a collapse of personal consumption expenditures — from 3.1% to just 1.0%.
GDP in the US hasn’t fallen more than 1.5% save for before or during a recession since they started recording GDP quarterly in 1947.
This is what you get when you keep letting banks artificially inflate the economy. Eventually, the bubble pops…