Friday, June 18, 2010

"Economic recovery" hits a wall

SHOOT: The recovery was based on what? What new investments? What major changes in our industrial way of doing things? Nope we're still slap bang in the middle of the original recessionary conditions, but without savings, and without bailout money this time. Europe is still deflating, and the USA is technically bankrupt. So it's just a matter of when the world decides the game is up.
clipped from
Raymond Sanchez Jr., right, a recruiting agent for New York Life Insurance Company speaks to a job applicant during the New York Career Fair, Wednesda

WASHINGTON – The number of people filing new claims for jobless benefits jumped last week after three straight declines, another sign that the pace of layoffs has not slowed.

Initial claims for jobless benefits rose by 12,000 to a seasonally adjusted 472,000, the Labor Department said Thursday. It was the highest level in a month and overshadowed a report that showed consumer prices remain essentially flat.

The rise in jobless claims highlighted concerns about the economic rebound — especially after a report earlier this week said home construction plunged in May after government tax credits expired.

If layoffs persist, there's a concern that the June employment numbers may show a decline in private-sector jobs after five straight months of gains, said Jennifer Lee, an economist with BMO Capital Markets.

"We've definitely seen the economic recovery hit a wall," Lee said.

"As each week goes by, doubts about the underlying strength of the economic expansion grow."
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