In the week ending Sept. 11, the advance figure for seasonally adjusted initial claims was 450,000, a decrease of 3,000 from the previous week’s revised figure of 453,000. The 4-week moving average was 464,750, a decrease of 13,500 from the previous week’s revised average of 478,250.
No movement of materiality in the futures on this one. Blipped up, blipped down, settled back pretty much where it was. (But, the ~4 handle drop before leads one to wonder if certain “favored people” got it early…. cough-Goldman-cough)
The market’s knee-jerk “if it’s not a disaster rally 10 handle” reaction seems to have faded off. Perhaps some people have started to think about what I’ve talked about for months – you need a number around 350,000 before we see anything that represents actual job growth in the economy. 450k on a weekly basis won’t do it.
Neither will people rolling off the government cheese, as continues to happen – 400,000+ of them during the last week of August. That’s 400,000 newly-impoverished who thought Obama would save their ass, now waking up to the reality that even 99 weeks of unemployment eventually runs out.
CNBS had the usual parade of people on this morning saying “the recovery is proceeding.” Oh really? Where are the jobs? 400,000 new potential rioters seems to be going the wrong way, don’t you think?
Everyone seems to understand (even if they don’t talk about it) that it’s the “government cheese” that has kept the “rabble” (that is all the Americans that have been consciously and intentionally screwed by all the offshoring, all the financial fraud and the scams) from rising up and saying “ok, jackass, this time you lose!” That’s one of those “let them eat cake!” moments that nobody wants to see but everyone realizes in the back of their mind can happen – a man who has lost everything has nothing left to lose. That, a gallon of gasoline and a pack of matches are a bad combination.
Today we also got the PPI report which showed an 0.4% increase in August, with most of it in energy – or so they say. If you believe the government there was a decrease in food prices – something that I find amusing, seeing as I can’t find it in the grocery store (quite to the contrary; all I see there are gains!) More ominously we have a 12-month run rate that is now well over The Fed’s claimed inflation target of 1-2% for every month since November of last year, with a lot of that being in the energy complex – the part that, of course, they all want to ignore but which every person in America has to consume if they want to keep warm in the winter and make it to work!
Larry Summers is flapping his gums on CNBS as I write this, with a claim that a “massive failure of regulation” led to the crisis. Oh really Mr. Jackass? Shall we talk about your record in that regard with Haaaarrrrrvvvvaaarrrrdddd? Funny how that question is never asked by the so-called “mainstream media” – how Mr. “it was all someone else’s fault” doesn’t want to talk about his personal experience with derivatives abuse.
If we’re going to create an economic environment in which there is “confidence” the first step in doing it is to punish the people who did, and still are, intentionally lying about asset valuations and running various scams on the American people!
Now there’s something you won’t hear on the Tee Vee.