I don’t see how the capital markets go higher once the government starts sapping up all that liquidity.
U.S. gross domestic product rose by a seasonally adjusted 3.5% annual rate from July through September, the Commerce Department reported in its first estimate of third-quarter economic activity. Economists had forecast 3.2% growth.
The economy’s growth was the first since the second quarter of 2008 and serves as an unofficial confirmation that the longest and deepest recession since the Great Depression has ended. The GDP gain was driven by consumer spending, which rose by 3.4%. Economists said the massive stimulus injected by the U.S. government, such as the cash for clunkers program, helped boost consumer spending.