James Hamilton concludes:
So although the headlines may sound scary, I do not think the GDP report changes the underlying fundamental picture. We knew that fiscal contraction, developments in Europe, and Hurricane Sandy would exert a drag on the economy, and they did. We knew that housing would help a little, and it has. The reasonable expectation is still to anticipate positive but below-normal growth for the first half of 2013, and hopefully a better picture for the second half.
Note: Groupthink is a psychological phenomenon that occurs within a group of people, in which the desire for harmony or conformity in the group results in an incorrect or deviant decision-making outcome. Group members try to minimize conflict and reach a consensus decision without critical evaluation of alternative ideas or viewpoints, and by isolating themselves from outside influences. Loyalty to the group requires individuals to avoid raising controversial issues or alternative solutions, and there is loss of individual creativity, uniqueness and independent thinking.