GDP Revised Downward. Economy Still Shaky.

Third quarter GDP numbers were released this morning and were revised downward to show a 2.2% growth in the third quarter.  This is the second downward revision in the Q3 GDP number.  (Makes you think that they're just using a magic eight ball to make these things up, no?)  Weakness seemed to be primarily due to lack of business investment and invenory build.

The pony in all this, as I've noted to some of you, is that at SOME point, businesses HAVE TO start rebuilding inventory.  That will create a tailwind in 2010, in the optimists view.  Also, as large corporations  continue to hold back on investing in new plant and equipment, cash continues to accumulate.  As noted in the LET'S MAKE A DEAL post below, that helps to create M&A conditions that could drive the market going forward.

Nevertheless, the net takeaway must be that, notwithstanding whether the glass is half full or half empty, the contents of the glass are pretty darn murky.