College of Political Knowledge
Economic Desk
If you are old enough to remember the old broad that use to do the Wendy’s commercial, I think…I am old and not very sharp on ads……
It this case the “beef” is DEMAND….I have been bitching about the slow recovery saying that these dinks created liquidity for the banks and should have created demand….for demand is the only way to recover from this recession…..the most recent data as posted by AP:
First-time claims for jobless benefits edged up by 2,000 to a seasonally adjusted 484,000, the Labor Department said Thursday. Analysts had expected a drop. That’s the highest total since February.
Initial claims have now risen in three of the last four weeks and are close to their high point for the year of 490,000, reached in late January. The four-week average, which smooths volatility, soared by 14,250 to 473,500, also the highest since late February.
The report comes after the Federal Reserve said Tuesday that “employers remain reluctant to add to payrolls.” The central bank said the pace of economic recovery is likely to be more modest than anticipated.
And on Wednesday, the Commerce Department said June imports jumped while exports dropped. That pushed the trade gap to its widest point since October 2008. Many economists say that could reduce economic growth estimates in the April-to-June quarter to 1.2 percent — half the 2.4 percent annual rate the government estimated last month.
That’s a sharp slowdown from the 5 percent growth in the final quarter of 2009 and the 3.7 percent pace in the January-to-March quarter. That weakening could be prompting more employers to cut staff, or at least hold off on hiring.
And the other indicators are NOT looking so good…like foreclosures up 12% over last month……housing starts are slow…about the only thing looking good as far as the economy goes is the bonuses given by corporations and the earnings per share by most companies….
Nothing listed above will help create demand and without it there is zero chance of a good stable recovery.