19 Aug
2010
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Jobless Claims Rise during Obama’s ‘Summer of Recovery’

Dutifully and solemnly I will continue to report the continuing erosion of American employment…

From MarketWatch:

WASHINGTON (MarketWatch) — First-time filings for state unemployment benefits rose unexpectedly last week to reclaim the highest level for this key economic benchmark since the middle of last November, the Labor Department reported Thursday.

For the week ended Aug. 14, initial claims rose 12,000 to 500,000. This is the highest level since the week ended Nov. 14, 2009.

As usual, “economists were surprised.”  The news was “unexpected.”  Um, why?  Why after 18 straight months of wrong predictions are they still surprised when they’re wrong?

On Tuesday, CNBC reported that bankruptcies have reached a 5-year high:

U.S. bankruptcy filings have reached the highest level since 2005, government data released on Tuesday show, as the economy slows and the unemployment rate hovers just below double digits. There were 422,061 bankruptcy filings between April and June, according to the Administrative Office of the U.S. Courts, up 9 percent from 388,148 in the prior three-month period, and up 11 percent from 381,073 a year earlier.

In other news, the Philly Fed reports that its manufacturing index has turned negative.  This, predictably, was “unexpected”:

NEW YORK (MarketWatch) — Treasury prices turned higher on Thursday, pushing yields down, after the Philadelphia Federal Reserve’s manufacturing index unexpectedly turned negative this month.

Let’s recap and summarize:

  • Employment, Manufacturing DOWN
  • Bankruptcies UP
  • “Economists” have a worse prediction record than the weatherman
  • The “Summer of Recovery” is doublespeak for what is truly the “Summer of Depression”
  • The moral today’s blog post is that “unexpected” really means expected.
  • What’s really expected is negative economic news.

Thank you Obama, Pelosi, and Reid for bringing us back to 1932.

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