I’ve always been amazed to see how markets respond instantly to “real-time” government economic statistics, when their inaccuracy is well-known. The corrections (errrrr, revisions) are usually ignored.
Those who believe government statistics are biased, and not just inaccurate, will find ammunition in this article. Nine of the 13 quarters that were reviewed were revised down. Employee compensation was revised down by nearly a full percent in 2007. And corporate profits had been under-reported by a startling $200 billion dollars.
U.S. Recession May Have Begun in Last Quarter of 2007 (Update2) By Timothy R. HomanPosted July 31, 2008 by Nathan Gendelman
