Still a Bumpy Ride

Today’s jobless report was – again – unexpected by analysts. These “experts” wishcast a decline in the weekly claims, but they got an increase of 1,000 to 427,000. However, that’s not really true either. After the data was announced last week it was later revised upward from 422,000 to 426,000 which means today’s number is actually 5,000 more than last Thursday.
When you think that 427,000 new people are showing up at the unemployment office it’s like an entire small city finding its occupants without jobs. This has been happening week after week for years now. That is a very sobering number.
Another bad economic sign today is the announcement by the USDA that the corn crop suffered more than they thought with the cold, rain and flooding. “It will keep U.S. corn supplies at their tightest level in 15 years, through the fall of 2012,” the government says. Surging China demand doesn’t help either.
In the housing market, Robert Shiller of the Case Shiller index sees a 10-25% decline in home prices possible.
President Obama said we are experiencing a few bumps in the road, but this seems more like boulders in the road.

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