Thursday, August 07, 2008

Jobless Claims Surge

Jobless claims surge to highest level in 6 years.
The number of newly laid off people signing up for jobless benefits last week climbed to its highest point in more than six years as companies cut back given the faltering economy.

The Labor Department reported Thursday that new applications filed for unemployment insurance rose by a seasonally adjusted 7,000 to 455,000 for the week ending Aug. 2. The increase left claims at their highest level since late March 2002.

A program to locate people eligible for jobless benefits played a role in the increase, a Labor Department analyst said. However, the analyst couldn't say how much of a role.

The latest snapshot of layoff filings was worse than analysts expected. They were forecasting new claims to drop to around 430,000.
I wonder if Phil Gramm would consider these people whiners.

Consumer Debt Soars

The Middle Class is now the working poor with a credit line.
U.S. consumers - fortified by the government's rebate checks - boosted their borrowing in June at the fastest pace in seven months.

The Federal Reserve reported Thursday that consumer credit increased at a brisk annual rate of 6.7% in June. That was up from a 3.8% growth rate in May. It marked the biggest increase since November when consumer borrowing grew at a 8.2% pace.

Debt rung up by consumers rose by $14 billion in June from the previous month to a total of $2.59 trillion. That was more than the $6.4 billion over-the-month increase economists were forecasting.

Demand for non-revolving credit used to finance cars, vacations, education and other things, went up at a rate of 6.6% in June, marking a sizable pickup from May's sluggish 1.5% pace.

Meanwhile, consumers' appetite for revolving credit, which is primarily credit cards, increased at a rate of 6.8% in June, a moderation from a 7.6% growth rate logged in May. Consumers have been forced to charge more of their purchases on credit cards as banks have tightened lending standards on other types of loans.
How exactly are they supposed to pay ths back at the incredibly high interest rates charged on credit cards? The answer is they are not. They will just continue to pay interest to these credit card companies and never get ahead. The death of the American Middle class is almost complete.

Tuesday, August 05, 2008

June Inflation Jumps As Incomes Barely Rise

The bad economic news just keeps coming.
Consumer prices jumped at the sharpest rate in more than a quarter century during June, and consumers coping with soaring costs received their smallest income gain in a year, the government said on Monday.

The Commerce Department said personal incomes edged up 0.1 percent after rising 1.8 percent in May. June's rise was the smallest since April 2007, when income was flat.

On a year-over-year basis, prices rose 4.1 percent in June, up from 3.5 percent in May, for the biggest annual gain since May 1991.

An inflation gauge tied to consumer spending jumped 0.8 percent in June, its steepest gain since a 1 percent rise more than 27 years ago, in February 1981.
You would think with the continual news of a sinking economy that the race for president would be over. We have one candidate who voted to support Bush policies over 90% of the time or we have another candidate who understood the War in Iraq would be a colossal disaster and yet the race is neck and neck. Never underestimate the stupidity of the American electorate. If this country votes to continue these failed economic policies then don't be suprised when we have an economic collapse like Argentina.