A Dip or Drowning?

This morning’s jobless claims dipped 6,000 to 422,000. That is hardly an improvement. Tomorrow’s unemployment number for May should shed some more light on the jobs situation – if you believe the government’s data.
Also troubling was the news that factory orders fell by 1.2%, which is more than expected and the largest dip in a year.
We found out that the auto bailout has cost the taxpayer $14 billion, but that hasn’t righted the situation.
Tyler Durden at Zero Hedge blog asks “Can we please stop pretending the GDP is growing?” He explains it this way. “Let’s say you need $3,000 to pay all the household bills. No problem, just go borrow $21,000 and your household economy will grow by $3,000. If this isn’t the height of fiscal nonsense than what is?”
He notes that “the Feds borrowed and spent 5.1 trillion to get 700 billion. We’ve borrowed and spent $7.28 for every $1 of nominal growth in GDP… If you borrowed $7 to get $1 in your pocket, would that strike you as a good deal?”

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