The Phaserl


Economists: The U.S. Economy Shrank In Q1, But Better Days Are Just Around The Corner

by Michael Snyder, Economic Collapse Blog:

During the first three months of this year, the U.S. economy contracted at a 1 percent annual rate.  Despite this, mainstream economists flooded the mainstream media with assurances that much better days are just around the corner on Thursday.  In fact, many of them boldly predicted that U.S. GDP would grow at a 3 or 4 percent annual rate in the second quarter.  None of them seem the least bit concerned that another major recession is rapidly approaching.  Instead, they just blamed the bad number for the first quarter on a “severe winter“, and the financial markets responded to the GDP news quite cheerfully.  In fact, the S&P 500 soared to another brand new record high.  No matter how bad the numbers get, almost everyone in the financial world seems quite optimistic.  But is there actually good reason to have such optimism?

Read More @

Help us spread the ANTIDOTE to corporate propaganda.

Please follow SGT Report on Twitter & help share the message.

1 comment to Economists: The U.S. Economy Shrank In Q1, But Better Days Are Just Around The Corner

  • rich

    Private Equity Says “Nothing to See Here” on Secret Document Release, So Why Not See Them All?

    First, the Pennsylvania Treasury took the documents down on Thursday, so that our websites (here and here) are now the best way to obtain them. Note that does not necessarily mean the the state Treasury was pressured to take them down. Media outlets were contacting them on Tuesday, so the agency knew of the issue then. It’s reasonable to assume that given that they had signed confidentiality agreements for each of these documents that they felt they needed to take them down to minimize exposure.

    Some general partners have taken a fairly relaxed view of the recent leak of their limited partner agreements—which raises the point that what has been under lock and key for so long in this industry actually doesn’t need to be….

    So now that the private equity firms now treat the disclosure of these formerly super-secret contracts with a collective shrug, we might as well take their new posture seriously.

    I hope readers will join me in pushing for the passage in every state of legislation to authorize disclosure of private equity limited partnership agreements and side letters, with the proviso that the legislation does not become effective until it is passed in states that collectively represent at least 25% of all public pension fund commitments to private equity as measured by an authoritative source. After all, the industry hasn’t deigned to respond to the documents’ release, so clearly their is no issue of competitive harm or other justification for continued secrecy. But to make sure the badly captured public pension funds themselves don’t oppose this legislation, it also needs to neutralize the threat used by private equity to intimidate state agencies into siding with them against disclosure: that the general partners will refuse to invite the public pension funds into future deals. If enough industry dollars is at stake, the private equity industry’s past position will become politically and practically untenable.

    So let’s see if private equity lives up to its new posture of indifference, or reverts to its former stance when journalists like those at Reuters who’ve been after limited partnership agreements for years come knocking at state pension fund doors asking for disclosure. No doubt, they’ll resume trying to snow judges with their patently false “trade secret” palaver.

Leave a Reply

You can use these HTML tags

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>