• 26 Feb 2009 at 9:57 AM

Doomed!

“Nothing to see here. Move along, move along! Sign that the economy might have to reset itself? No, no. Not that at all. Quite the reverse. You people see problems, I see opportunity.”
In reality, it seems pretty clear that the economy needs to do some major adjusting. Unfortunately, there is simply no quick fix. Equally unfortunately, expectations seem so high (even Bernanke was talking beginnings of a recovery at the end of the year) we wonder if there isn’t a rather big disappointment ahead.

New U.S. claims for state unemployment benefits unexpectedly jumped last week to a 26-year high while total claims cracked the five million mark for the first time ever, the latest evidence that the already severe recession is deepening as it extends into its second year.
Separately, durable goods orders plunged in January, a sign of future demand fell, and a barometer of capital spending by businesses dropped, according to data showing how the recession is battering the factory sector.
Initial claims for jobless benefits rose 36,000 to 667,000 after seasonal adjustments in the week ended Feb. 21, the Labor Department said in a weekly report Thursday. That’s the highest level since Oct. 2, 1982, although the labor force was much smaller then.

Total Jobless Claims Top 5 Million; Durable-Goods Orders Drop [The Wall Street Journal]

Comments (17)

  1. Posted by guest | February 26, 2009 at 10:00 AM

    The sky is falling!
    But guess what————–>

  2. Posted by guest | February 26, 2009 at 10:06 AM

    Do you think the ‘Nuts for Nuts’ guy will give me a mixed bag of cashews and peanuts for a wheelbarrow full of greenbacks next week?

  3. Posted by guest | February 26, 2009 at 10:07 AM

    The market is up today — everything is just fine please relax — growth in 2H08.

  4. Posted by guest | February 26, 2009 at 10:08 AM

    Once the unemployment rate gets to 8.5%, the media will start to use the term “Depression” – they won’t be able to help it – it will spiral down from there.

  5. Posted by guest | February 26, 2009 at 10:13 AM

    The roof, the roof, the roof is on fire!
    We don’t need no water!
    According to Obama’s plan he will protect his people, bring peace on earth and cure all diseases. Hope is around the corner!

  6. Posted by guest | February 26, 2009 at 10:17 AM

    When did this turn into a mainstream news site?? Let’s keep focus on what’s important: Erin’s new rack!

  7. Posted by guest | February 26, 2009 at 10:20 AM

    @6 – Obama will be the Jimmy Clausen of presidents. without the SWEET hair, of course.

  8. Posted by guest | February 26, 2009 at 10:23 AM

    @8 That’s disgraceful that you’re picking on a 21 year old kid who has no offensive line.

  9. Posted by guest | February 26, 2009 at 10:25 AM

    snap, snap, quick…. GDP -3.3, 22% drop in home prices, 8.9% unemployment…. what’s your stress test result?

  10. Posted by guest | February 26, 2009 at 10:25 AM

    @7
    I keep telling you guys Trish is numero uno.

  11. Posted by guest | February 26, 2009 at 10:26 AM

    “Joke: Have you heard about Denny’s new breakfast special in honor of the mother of the octuplets? 14 eggs, no sausage and the guy next to you pays for it.”
    http://tinyurl.com/5srjb

  12. Posted by guest | February 26, 2009 at 10:26 AM

    I assume that the unemployment figures do not count the mass layoffs at BofA from January since those guys are still getting salary for 3 months and won’t claim unemployment benefits until late April. I wonder how many other companies are following the WARN Act, resulting in an underestimate of unemployment. Could be an ugly Q2 as a result…

  13. Posted by guest | February 26, 2009 at 10:30 AM

    Law firms are telling you that you have “x amount of months left of employment”, according to my lawyerly friends.

  14. Posted by guest | February 26, 2009 at 10:38 AM

    @15, it’s more like “you suck and have no future, and have a month to find a bodega that will allow you to stock peanuts while we figure out how to replace the business Wall Street gave us.”

  15. Posted by guest | February 26, 2009 at 11:20 AM

    @7 Erin got a new contract and asked herself, “What it it that I don’t have that I really want?” The answer: bigger armpit warmers.

  16. Posted by Novice | February 26, 2009 at 11:22 AM

    @11 Seconded.

  17. Posted by guest | February 26, 2009 at 11:56 AM

    Tiny Tim needs to take his finger out of the dyke and get on this. Continuing to throw money at the problem ain’t enough to fix it.

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