Unemployment claims jump to a 16 year high
As if our economy needed more bad news, we know now that new unemployment claims have jumped to a 16 year high, at 542,000. The four month average is at a 25 year high, at 506,500 new claims. This news can mean nothing but bad news for our economy. In addition to being bad for the people who have lost their jobs, it will also cause a ripple effect that will be felt across our nation’s economy. From The Associated Press:
The figures likely will cause some economists to increase their projections for the unemployment rate this year. Many already expect unemployment to reach 7 percent by early next year and 8 percent by the end of 2009.
If you haven’t noticed, our nation has a penchant for predictions. This doesn’t seem to matter if you are talking about sports, politics, or our economy. Having said that, pay close attention to the stock market today. I will almost guarantee you it will drop like a rock, just on the news of the high unemployment claims. With Wall Street already below 8,000, it appears to be poised to go below 7,882, which was the low on October 10. (There I go with a prediction of my own.)
The only good thing I have seen come out of this is the price of oil and by proxy, gasoline. Oil dropped briefly beneath $50 per barrel yesterday and I am seeing gasoline prices at $1.69 in Fort Smith, Arkansas. That is a good thing, but as my wife said last night, I believe I wouldn’t mind fuel prices going a little higher, if it meant that our economy was climbing out of this recession. The trouble is, we are in the middle of spending $700 billion on bailing out different companies and so far, we have seen nothing for our taxpayer dollars. I am afraid the worst is yet to come.
That’s my take!
Larry
