September 10, 2004

The Economy Is Fine. Really.

Jobless Claims Dive, Imports Hit Highs - Reuters [emphasis mine]

...The dollar initially gained slightly against the euro after the data but later gave ground. U.S. 10-year Treasury notes also slipped after an auction drew almost no private demand, ending 9/32 lower for a 4.19 percent yield.

Dealers focused most closely on the employment numbers. The Labor Department said first-time claims for state unemployment benefits dropped 44,000 to 319,000 in the week ended Sept. 4 from 363,000 the previous week.

...The four-week moving average of filings, which smoothes weekly fluctuations, fell 3,750 to 339,250. Economists noted the average has been stuck around 330,000-340,000 for months.

...Employment has been a weak spot for the American economy, which grew strongly last year without creating much work, but the picture brightened in August when payrolls grew 144,000. ...

I'm not exactly an economic genius, but why is it considered a bright spot when jobless claims per week are double the number of new jobs created in a month? It seems a great mystery.

EDS will cut 20,000 jobs in two years, after having cut 5,000 over the previous year.

Delta will cut 7,000 jobs.

Oil prices rise as U.S. oil inventories drop. Possible bright spot in increased overall production.

Both unions and industry groups are united in asking that China be forced to revalue its currency. How much of our debt are they holding again?

Posted by natasha at September 10, 2004 12:16 AM | Economy | Technorati links |

Don't forget United's plan to cut 6 thousand jobs.

Posted by: John F. at September 10, 2004 08:21 AM

Natasha, I asked a similar question about three months ago. Never got much of an answer, but perhaps you'll have better luck than I did. After all, you guys have, like, 30 times as many readers as I do, and some of them actually, gasp, write comments on your posts.

Posted by: N in Seattle at September 10, 2004 09:33 PM