Thursday, February 7, 2013

Is it a recovery yet? (Weekly report, 02-07-13)

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.)

"New jobless claims dropped last week to 366,000 as the labor market continued to show signs of moderate growth." (The Los Angeles Times)

"'Businesses are sitting tight,' said Ryan Sweet, a senior economist at Moody’s Analytics Inc. in West Chester, Pennsylvania, and the most accurate forecaster of claims in the past two years, according to data compiled by Bloomberg. 'They’re not hiring aggressively nor are they firing. It’s difficult to identify the spark that is going to lead to much stronger job growth.'" (Bloomberg)

Jobless claims point to slow hiring (CNNMoney)


     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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