Thursday, September 13, 2012

Is it a recovery yet? (Weekly report, 09-13-12)


A recovery would be indicated by weekly initial jobless claims holding below 500,000. (See this post.)

IT'S A RECOVERY! (And it has been a recovery for every week since the Nov. 25, 2009 report, with the exception of the Aug. 19, 2010 report.)

"The Labor Department's data showed that unemployment claims rose by a seasonally adjusted 15,000 to 382,000." (NBCNews)

[Says Wayne Kaufman, chief market analyst at John Thomas Financial in New York:] "Claims are going the wrong way, a little lackluster and worse than expected. As we near 400,000, that's really not something we want to see. This could have been impacted by the tropical storm, but even without that, this isn't what we want to see. I hate to react negatively to one week's data, but the labor situation in the country is ugly." (Reuters)

U.S. Jobless Claims Rise to Highest in Two Months: Economy (Bloomberg)

SEE LAST WEEK'S POST HERE.

     The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest that an energy shock may be coming much closer in time than is generally imagined.

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