‘Oh My Gosh’: CNBC Host In Disbelief Over Dismal GDP News
CNBC host Rick Santelli reacted with shock to new Gross Domestic Product (GDP) numbers released Thursday.
“Oh, my gosh,” Santelli said. “Not only was I wrong, down nine-tenths of 1% on first look at second quarter GDP – down nine-tenths of 1%. OK, I know there’s an organization that decides whether we’re in a recession or not, but investors are not going to wait. Two back-to-back negative quarters, it’s not good, call it whatever you want.”
The Bureau of Economic Analysis released the GDP figure Thursday. Santelli had predicted an increase of 0.6% seconds prior to the numbers coming out, while a survey of analysts by Bloomberg News predicted an increase of 0.4%.
“You look at the price index, also not very good news,” Santelli said. “Eight-point-seven percent. Eight-point-seven percent on the price index. That will still comp back to 1981 because in 1981, our comp goes all the way up to 11%.”
“We continue to see the deterioration in stocks and I know there’s going to be a huge debate as to what this GDP means,” Santelli said. “I really … got blindsided by the inventory levels. If it wasn’t for those yesterday, I’d have predicted a negative number.”
GDP shrank by 1.4% in the first quarter of 2021. GDP declines in two consecutive quarters has historically been considered the definition of a recession, according to Investopedia.
The White House referred the Daily Caller News Foundation to a statement President Joe Biden issued Thursday, saying the country is “on the right path” and will “come through this transition stronger and more secure.”
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