Friday, May 09, 2008

Detour on the Road to Hooverville

More grim economic news.

Democrats hardest hit.

The number of newly laid off workers seeking unemployment benefits dropped far more than expected last week.

The Labor Department reported Thursday that applications for unemployment benefits fell to 365,000, a decline of 18,000 from the previous week. Economists had been looking for a much smaller decrease of around 5,000.

Weekly jobless claims have been exceptionally volatile in recent weeks because of strike-related layoffs in the auto industry and an unusually early Easter, which played havoc with the government's seasonal adjustment measurements.

Many economists believe a prolonged housing slump and severe credit crisis have pushed the economy into a recession. For that reason, they think job layoffs will rise in coming months as the unemployment rate climbs higher.
Whatever the economists think, the opposite usually occurs.

The jobs report isn't the only bright spot.
Wall Street closed a quiet trading session with a moderate advance Thursday, pushing the Dow Jones industrial average up by 52.43 points to 12,866.78.

In other economic news, consumers gave retailers some relief in April after a long stretch of dismal sales. Early reports from the nation's big chain stores showed customers bought the basics at discounters and wholesale clubs, putting Wal-Mart Stores Inc. and Costco Wholesale Corp. among the top performers last month.

Analysts predicted the flood of rebate checks will boost sales in coming months, helping to offset soaring gasoline prices and falling home values.
Obviously things are still very volatile and the housing market woes and oil prices are a burden. But when we're usually subjected to a steady diet of catastrophic doom and gloom (I'm looking at you, Chuckie Schumer), it's worth noting that we're still the economic engine driving the world and we should hope it stays that way.

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