This week marks the one-year anniversary of the Lehman bankruptcy. The media struggles to say something meaningful about it. Here at the Daily Reckoning we will not even attempt meaningfulness. We’ll be satisfied with a few snide remarks.
Just reading the newspapers gives me a daily diet of economic gloom. For example, my pessimism for today (Aug. 26) started with the headline of my local newspaper this morning. The Pittsburgh Tribune Review delivered a banner message, “Record Red Forecast at $1.58 Trillion.” (I think they printed the newspaper before the word came out that Sen. Ted Kennedy died.)
A rise in existing home sales last month shows things are getting better in the U.S. housing market, but the still-dire unemployment situation and the looming possibility of a jobless recovery may halt the rally by the end of the year. That makes the extension of an $8,000 tax credit for first-time homebuyers imperative.
The retail sector is all over the news. Unfortunately, the headlines are almost all negative. As unemployment risks remain high, consumers refuse to spend.
An article on Bloomberg reported that US Treasury Secretary Timothy Geithner said, “The US unemployment rate may not peak until the second half of 2010, even as the broader economy shows signs of improvement.”
For whatever reason, the French newspaper, Liberation, chose to recall a grim event last week. On February 4, 1912 Franz Reichelt, also known as the ‘flying tailor,’ put on his contraption – a homemade outfit designed to work like a parachute – went up to the first observation level of the Eiffel Tower, hesitated…then stepped over the rail and jumped.
As we all know, the depression is over. The stock market seems to think so… with the Dow up 32 more points on Friday… and apparently eager to go higher. Oil rose above $64. And gold is trading at $937 this morning.
We now know that Team Obama’s optimism about the power of ‘stimulus’ was misplaced. The official unemployment rate now stands at 9.5% – 20% higher than Obama claimed it would be without the $787 billion stimulus.
U.S. Government to Hold Hearings on Futures Trading; Boeing to Acquire 787 Fuselage Maker; Job Losses Contribute to Rising Credit Delinquencies; Ex-Goldman Sachs Worker May Have Stolen Crucial Code; Declining Southwest Traffic Prompts Deep Fare Discounts; GM Asks U.S. to Let It Drop Dealers, Parts Maker Files for Bankruptcy
NEW Unemployment figures Show We’re Still Lingering in Depression.
