Spike In Unemployment Benefits Seekers

Department Of Labor Reports Rise In Jobless Claims, Further Evidence Of Economic Slowdown

(CBS/AP)  More new people signed up for unemployment benefits last week, fresh evidence that a general economic sluggishness in the country is spilling over into the job market.

The Labor Department reported Thursday that new applications for unemployment benefits rose by 19,000 to 373,000 last week. The increase was larger than many economists were expecting. They were forecasting claims to rise to around 350,000 last week.

Fallout from a housing bust and credit crunch is sapping the economy's strength. The economy barely grew - at 0.6 percent - in the final quarter of last year and is expected to be even weaker in the current January-to-March period. With the economy slowing, companies have been reluctant to hire and want to keep their existing work forces lean.

The U.S. economy skidded to a near halt in the final quarter of last year, clobbered by dual slumps in housing and credit that caused people and businesses to spend and invest more sparingly.

The Commerce Department reported Thursday that the gross domestic product increased at a scant 0.6 percent pace in the October-to-December quarter. The reading - unchanged from an initial estimate a month ago - underscored just how much momentum the economy has lost. In the prior quarter, the economy clocked in at a brisk 4.9 percent pace.

Economists had thought the newly released fourth-quarter GDP would have been bumped up to a 0.8 percent growth rate.

The housing picture looked even more bleak in the new report.

Builders slashed spending on housing projects by a whopping 25.2 percent on an annualized basis in the fourth quarter, the biggest cut in 26 years.

And, even though economic growth slowed, inflation picked up - an ominous mix that could spell further trouble for the economy.

The National Association for Business Economics expects economic growth in the current January-to-March quarter to slow to a meager 0.4 percent pace. Some analysts believe the economy's performance could be even worse and actually shrink during this period. Under one rough rule, the economy would have to contract for six months in a row for the country to be viewed as in a recession.

With risks lurking that the problems could intensify and further hurt the economy, Federal Reserve Chairman Ben Bernanke made clear he stands ready to lower a key interest rate again. The Fed, which started cutting interest rates to bolster the economy in September, has turned much more aggressively recently. In eight days in January, the Fed slashed rates by 1.25 percentage points - the biggest one-month reduction in a quarter-century. Rates are expected to move lower at the Fed's next meeting on March 18.

Bernanke, however, is hopeful that previous rate reductions and the $168 billion economic aid plan of tax rebates for people and tax breaks for business will energize the economy in the second half of 2008.

A gauge of inflation linked to the GDP report showed that "core" prices - excluding food and energy - grew at a rate of 2.7 percent in the fourth quarter. The inflation reading - although unchanged from the government's initial estimate - showed that inflation had picked up sharply from the third quarter's 2 percent pace.

The inflation figure is above the Fed's comfort zone - the upper bound of which is a 2 percent inflation rate.

With inflation rising as the economy slows, fears are increasing that the country may be headed for a bout of stagflation. That's a scenario the country hasn't experienced since the 1970s.

Even though Bernanke has made clear the Fed's top priority - for now - is trying to get the economy back on track, he also says he remains mindful of inflation risks, especially from high energy prices.

Oil prices have reached new record highs, galloping past $100 a barrel in recent days. High energy prices can spread inflation by boosting the costs of a wide variety of other goods and services and can put a further damper on overall economic growth by crimping consumer spending.

Consumers boosted their spending at just a 1.9 percent pace in the fourth quarter. That was down slightly from the government's previous estimate and marked a pullback from the third quarter's 2.8 percent growth rate. Consumer spending accounts for a big share of overall economic activity and thus is a major factor in how the economy fares.

Business spending on equipment and software grew at a 3.3 percent pace in the final quarter of last year. That was lower than the government's initial estimate and marked a deceleration from the third quarter's 6.2 percent growth rate.

There was a bright spot in the report, however. Sales of U.S. goods and services to other countries grew at a 4.8 percent pace in the fourth quarter, better than previously estimated. U.S. exports have been helped by the declining value of the U.S. dollar, which makes U.S. goods less expensive on foreign markets. The U.S dollar dipped to another record low on Thursday in Europe.

For all of 2007, the economy grew by 2.2 percent, the weakest showing in five years. That estimate also was not changed from an earlier reading.

Fallout from a housing bust and credit crunch is sapping the economy's strength. The economy barely grew - at 0.6 percent - in the final quarter of last year and is expected to be even weaker in the current January-to-March period. With the economy slowing, companies have been reluctant to hire and want to keep their existing work forces lean.

[b-easy63]

"And in 2008, the International Council of Shopping Centers projects 6,000 stores could close as Americans decide what they can live without."



Don''''t worry retail stores!!!! Bush and the idiots (sounds like a band but it really is the name of the stupid Bushmeister and the idiotic, azz kissing Congress) are putting together a stimulus package to save you. It goes like this:

1. They borrow 161 billion dollars and give it to the low to mid income American taxpayers.

2. They beg the tax payer to forgo bills/debt and just go out and spend it all at your stores.

3. They have their fingers crossed that people are too ignorant or irresponsible to use the rebate for a bill and actually go out and buy a few things.

4. After each of them spends maybe 25.00 apiece at your store--you are stupid enough to see it as an incentive--and you go out and build new stores and hire lots of new workers to capitalize on the money that ...uhmmm...they no longer have...cuz they already...uhmmmm..spent it at your store.

5. Anyhoo. The plan is for all sides to ignore the dominoes falling and to plant yet another set at the end of the stack. Bush and the idiots only need this to work until Jan 29. 2009 after which (as far as Dubya is concerned) the economy can let ''''er rip.

[kellyafische]

"And in the days of those ings the God of heaven will set up a kingdom that will never be brought to ruin. And the kingdom itself will not be passed on to any other people. IT WILL CRUSH AND PUT AN END TO ALL THESE KINGDOMS, and it itself will stand to times indefinite." (Daniel 2:44 Holy Bible) Bush is NOT that kingdom! Democracy is rule by the people. Theocracy is rule by God. Revelations 11:15 "The kingdom of the world did become the kingdom of our Lord and of his Christ, and he will rule as king forever and ever." John 18:36 "My kingdom is not part of this world." DO NOT BE MISLED! God''s kingdom rules from heaven, not from earth! Our Father in the heavens, let your kingdom come! Jesus healed the sick instantly and with no charge no side effects. HEALTH CARE. Jesus fed 4,000 on one occassion. No charge! No debt. WELFARE OF THE PEOPLE! And more! He showed us what he would do...he is now acting upon those promises, by removing the ones causing you so much suffering!

[liberalme]

In his speech today,,The Bushitt, said it made sense to help the people of Mexico,,so they wouldn''''t come here. Illegally,,,they are just trying to put food on the table,,he says.
But he forgets about the American people that need help.
What a slap in the face,,from this little creep!!
Posted by slim1h2o at 10:39 AM : Feb 28, 2008

Every day the Bushs live in the (OUR) White House--they live--rent free, don''t pay their own utilities, don''t buy gas for the planes, trains and automobiles--we''ll even be paying for Bush to wash his car after he''s out of office!!

All these wealthys were born into money--and have not had to work a day for it---they have absolutely no idea what the "average" American has to do to make ends meet.

I agree slim1h2o--Bush has been a constant insult to this country!!!

[kellyafische]

Genesis 9: 20 "Now NOAH started off as a farmer and proceeded to plant a vinyard." WHAT SHOULD YOU BE DOING RIGHT NOW? COLLECT SEEDS LIKE NOAH!! So that when this mess has come to an end, you WILL EAT and you will drink and you will rejoice in what YOUR GOD has done for you by FREEING you from SLAVERY to mankind! REJOICE IN GOD AND HIS PARADISE EARTH! PLENTY OF FOOD! PLENTY OF GOOD WORK!

[bm6005]

. WHY won''''t people rally up and not reelect these a-holes?
Posted by Mythoughts

Can''t answer that as I feel the same way. The mantra of ''08 "Vote out ALL incumbents in November" regardless of party affiliation! Send a message that we will no longer allow them the freedom to do what THEY benefit from and not us! They work for US!!

[zootallures2]

Economic Slowdown?

Na, just lack of enthusiasm, guilt, and depression, from living in a loony stank hole that bombed it''s own sky scrappers

[zootallures2]

It doom and gloom! You''ll all be starving in a month! But, if you act now, and by our doom and gloom survival kit...

[bookwerm314]

FYI, the HOUSING market also MUST have a big decrease!!! NOT anything wrong with that.. See, they built 20yrs worth of houses in 10yrs.. big boom, NOW a big bust.. their efforts to make more bank today hurts their efforts to make money tomorrow.. and so on.. Same for Cars.. if they dump a lot of cars with big rebates THIS year.. then folks who would have bought cars NEXT year but who bought earlier due to the deal are OUT OF THE MARKET!.. and so, when you add in the fact that tighter money (harder to get a mortgage, and fewer qualify) is going on, you have a big reduction in your pool of buyers.. how can they NOT have a big decrease? There is a supportable growth level based on incomes and we have EXCEEDED that! Now we have to drawback to spending that is not only within our incomes, but even less than that so we can (as a nation) pay the DEBT we ran up to overspend!

Not complicated.. why are the news organizations so pathetic at catching this? Where are the comparison in EVERY article of spending vs. income, how it exceeded income, etc. The FAKE equity rise in housing stocks was cashed out.. now the fluff in the market is leaving, housing prices drop, AND many folks are stupidly upside down.

[bookwerm314]

We are in a deep deep hole. They talk about the economy slowing, funded in the past by cheap money (now MORE of that) allowing us to spend more than we make.. and now, not so much.

So.. our economy Slows to a near halt? It SHOULD BE SHRINKING! Why? WE were spending a good bit MORE than our incomes, as folks cashed out fake equity (artificially inflated by cheap loans) from their houses. JUST the reversion to a supportable expenditure level IS a reduction.. It is neither wise nor good for us to even break EVEN! The Fed needs to be slapped. The USD has dropped from .85 to 1.51 Euro/USD, and guess what.. Gas WAS $1.70 seven years ago.. and now? $3.00.. and $3.00 x .85/1.50 = $1.70!!! The Gas has NOT gone up.. the Energy costs have NOT gone up.. the price of Gold has NOT gone up.. all these price "rises" are entirely due to us overspending, running up a deficit (trade AND budget), having interest rates TOO low, and generally printing way way too much money.. And the RICH are doing fine! THEY are diversified, have funds in every country.. and to THEM the USA is ON SALE!!! and for regular folks? WE are hosed. The Economy MUST shrink.. it is healthy AND wise..

[kellyafische]

I want my house back! I want my home business back! My son wants his teddy bear and puppy dog "duffy" back. We want land to garden! We want to homeschool! We want FREEDOM from fear of nuclear war, FREEDOM from children being shot and killed, FREEDOM for our neighbors in IRAQ who want to attend wedding without being blown to bits!

[kellyafische]

"BELIEVE ME! Giving you a $1,200 tax rebate in return for taking your job, your house, your future...that will fix the economy! HA!"

[kellyafische]

BUSH ---"I just took your job, your house, your future away from you ...BUT!!! I gave you a tax rebate! Aren''t I the good guy in your life?"

[venkata4--2008]

"Did someone forget to tell all of these unemployed people that the Chimp got on national TV this morning and assured us all that we''''re not headed for a recession? Then again considering the 100''''s of billions of dollars the current ruling elite have stolen for the American taxpayers the past 7 years I''''m sure their vision of the economy couldn''''t be more rosy. This has not been an American presidency, it''''s been a grand theft of historic proportions. Never before have so few stolen so much from so many. This is a class war and the ruling class is winning.

Posted by SgtRDS at 11:41 AM : Feb 28, 2008"

SgtRDS you have spoken my words. Thank you. This the ruling class can keep the ruled class struggle to pay for medical bills ( SCHIP is vetoed 2 times) and daily essentials in the mean time in this Prez. eyes economy is not headed to recession you see Tiffany''s posted huge profits so people (the Richie rich ) are doing good, so economy is good, that is this Prez.''s view. In year 2001 tax cuts are given because of 135 billions surplus given to him by President Clinton. Now what?

[sgtrds]

Did someone forget to tell all of these unemployed people that the Chimp got on national TV this morning and assured us all that we''re not headed for a recession? Then again considering the 100''s of billions of dollars the current ruling elite have stolen for the American taxpayers the past 7 years I''m sure their vision of the economy couldn''t be more rosy. This has not been an American presidency, it''s been a grand theft of historic proportions. Never before have so few stolen so much from so many. This is a class war and the ruling class is winning.

[kellyafische]

"In fact, unless those days were cut short, no flesh would be saved, but on account of the chosen ones, those day will be cut short." (Matthew 24:22 Holy Bible) ARE YOU AMONG THOSE WHO WILL LIVE IN GOD''S PARADISE EARTH? GENISIS CHAPTER 1 HOLY BIBLE. IT IS GOD''S WILL THAT YOU WAKE UP IN THE MORNING AND WORK YOUR OWN LAND, MAKE A NEW BENCH FOR YOUR WATERFALL...PLANT FRUIT TREES TO EAT FREE FOOD! SMELL THE FLOWERS GROWING IN YOUR GARDEN!***"And they will actually sit, each one under his vine and under his fig tree, and ther will be no one making them tremble, for the very mouth of Jehovah of armies has spoken it!" (Micah 4:4 Holy Bible) GOD LOVES YOU!

[kellyafische]

I know how hard you have worked in the factories, turning the same wheel in the same circle for generations! I know that about the time you think you have your life advancing to a point where you can plan for retirement you lose everything to the government. All the while you are told you are not good enough to play on their team. So understand this...there are 10 people on the team, but 161 people in the whole class...WHO DIRECTS THE FUTURE? 10 OR 161?

[kellyafische]

The next situation Americans will have to deal with is "FOOD SHORTAGES". If you learned anything in school about history you know that the weather has always been adversely affected by war. The GREAT DEPRESSION caused the midwest to dry up and was declared a "DUST BOWL." Barron County Wisconsin corn growers have been plowing corn crops under for two years from July drought. By the time it is supposed to reach knee high it is brown and shriveled. When money is taken from the government and sent over seas to deal with Tsunami, earthquake, floods...it does not come back into the economy. It is not Americans to blame...it is spending on war!

[kellyafische]

king77shaw is on the right track! When you stop supporting the government that is over you they no longer have money to promote nuclear devastation and WORLD WAR 3! Bush and Putin and the world rulers have a murder suicide pact to fire nuclear weapons in succession and turn the globe into an uninhabitable planet like mars....and your money is now going into that push and shove future of death to innocent men women and children while you starve!!

[rudy654-2009]

But Rush Limbaugh said that employment was up. He said so just last week. So there.

[kellyafische]

WE are living in the last days of this system of things! HERE IS YOUR SIGN: "Tell us when will these things be, and what will be the sign of your presence and of the conclusion of the system of things? ( Matthew 24:3 Holy Bible) vs. 7 "For nation will rise against nation, and kingdom against kingdom and there will be food shortages and earth quakes in one place after another. All these things are a beginning of the pangs of distress". SOMETHING NEW IS HAPPENING! THE END OF SLAVERY TO MAN! FREEDOM IS AT HAND!