Thursday, April 15, 2010

Labor, Housing Data Show Economy Still a Disaster

Data released concerning labor and housing confirm if we're in a recovery, it's now one that's sustainable, as another 24,000 applied for unemployment benefits for the first time and 35 percent more homes were foreclosed upon than in the same quarter last year.

So now we have a so-called jobless and foreclosure recovery.

As far as the jobless claims, every time we hear the numbers now the inclusion by the mainstream media is that it was unexpected. Well how come it's not unexpected to me and others, and I state it before it happens to confirm that.

Either productivity is so high with businesses that it's unprecedented, or the numbers are again being massaged to say what the Obama administration wants them to say.

Foreclosures reflect the weak housing and job market, while the job market reflects the fact that there is little hiring going on, if any at all, other then isolated instances.

I'm not convinced we're even out of a recession, let alone started on the road to recovery. Just because we hear some positive earnings reports doesn't mean a thing in relationship to the state of the U.S. economy, all that means is a lot of company continue to cut costs, not that they're able to raise margins to generate more profits from increased business.

There's nothing unexpected about any of this, and it will continue on for at least a year or more before there is really an turnaround, if it comes at all within that timeframe.

No comments: