Remember the Times Academics Told Us the Economy Would Collapse Without Government Spending?

Government Spending needed for growth?

First, an Overview of What We Saw Recently

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Before addressing the topic of govt spending and the performance of the economy and equity markets, a brief review of recent GDP figures seems in order.

GDP came in at 0.5% annualized Q/Q growth, below expectations of at least 1.5% growth.  The weakness confirms what we’ve been seeing out of housing, retail sales, and a host of other indicators – the first quarter of 2016 was weak.  Quite weak.

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