Q1 ‘12 GDP came in at a dismal 2.2%, not nearly fast enough to dent unemployment. The biggest problem, after adjusting for inflation, wages fell last year. The only reason consumer spending is up is because savings rates keep declining; to 3.9% in February. Worse, excluding inventory growth, GDP was just 1.6%. Add continuing declines in state spending and Spain, and ’12 is looking weak. Exports were the bright spot.