Eugene David<br>...The One-Minute Pundit

Posted 9:00 AM by Gene

In current dollar terms (not adjusted for price changes), GDP fell 5.8% to an annual rate of $14.2 trillion. It was the largest percentage drop in nominal GDP since 1958.

Other aspects of the report were very negative. Corporate profits before taxes fell a record $250 billion, or 16.5% at a quarterly rate. It was the largest percentage decline in profits since 1953. Domestic profits of financial corporations dropped $178 billion, while domestic profits of nonfinancial companies dropped $89 billion.

The government's estimates of profits from current operations do not include the writing down of bad assets.

For all of 2008, profits fell 10.1%, the most since 1970.

Consumer spending fell at a 4.3% pace in the fourth quarter, the worst since 1980. Spending on durable goods plunged 22.1%, the worst since 1987. Spending on nondurable goods fell a record 9.4%. Spending on services rose 1.5%.

Business investment dropped 21.7% in the quarter, the worst since the 1975 recession. Investments in equipment and software fell an eye-popping 28.1%, the worst since the 1958 recession. Spending on structures fell 9.4%, the first decline in more than three years.

Residential investment fell 22.8% in the fourth quarter, the 12th consecutive decline in the sector where it all began.

Let me guess...DOW UP ANOTHER 500!