GDP 5.7% in Q4 2009

This is the advanced Q4 GDP and it's a blow out. GDP increased 5.7% in Q4 2009.

Party on Garth! This is an advanced report, so there might be significant revisions. Recall Q3 2009 GDP originally came in at 3.5% and was revised down to 2.2%.

The acceleration in real GDP in the fourth quarter primarily reflected an acceleration in private inventory investment, a deceleration in imports, and an upturn in nonresidential fixed investment that were partly offset by decelerations in federal government spending and in PCE.

Just a little bit, investment is a blow out at 39.3% increase!

One must wonder how much of the business investment credit from the Stimulus, which was a 50% bonus depreciation, and allows a 50% write off on business investments in the first year, is the reason for this private inventory investment acceleration.

Volker: "We cannot rebuild the economy to the tune of 70 percent consumption or housing booms. It will just break down again,"

CNBC has an interesting news bit about something Volker said. First off, let me give kudos to AmericaBlog for first picking this up. In a meeting at the White House, the famed former Fed chairman basically said we need to rebalance the economy.  That to have a GDP where over half (well 70% give or take) is due to consumption is not sustainable long term.

The alternatives to help bolster future economic growth include boosting exports, applying innovative technology to green issues and improving the nation's infrastructure, Volcker said.

The former Federal Reserve chairman, who now heads the White House Economic Recovery Advisory Board, said Obama understands that "We cannot have so much consumption."