Yesterday the Dow Jones hit 10,015.86 (+144.8 for the day) and eclipsed the 10,000 threshold for the first time in a year. The Nasdaq also rallied to 2,172.23 (+32.34 for the day). The Dow reached that level on the back by strong earning reports from JPMorgan Chase & Co. and Intel Corp. On the strength of this break through some are suggesting that the economy is on the rebound.
However, here are the facts:
From the AP:
- The Labor Department said Thursday that first-time claims for jobless benefits dropped to a seasonally-adjusted 514,000 from an upwardly revised 524,000 the previous week.
- The tally of people continuing to claim benefits is to 5.99 million
- Employers have eliminated a net total of 7.2 million jobs since the recession began in December 2007, sending the unemployment rate to a 26-year high of 9.8 percent.
- The decline in jobless claims shows companies are cutting fewer workers, though the drop isn’t yet steep enough to signal new hiring
- RealtyTrac® the leading online marketplace for foreclosure properties, today released its U.S. Foreclosure Market Report™ for Q3 2009, which shows that foreclosure filings — default notices, scheduled auctions and bank repossessions — were reported on 937,840 properties in the third quarter, a 5 percent increase from the previous quarter and an increase of nearly 23 percent from Q3 2008. One in every 136 U.S. housing units received a foreclosure filing during the quarter — the highest quarterly foreclosure rate since RealtyTrac began issuing its report in the first quarter of 2005.
This may in fact be a sucker’s rally. So far this is a jobless recovery. Currently there are over 15 million people out of work and people are losing their homes at an alarming rate.
According to former Fed Chairman Alan Greenspan, “my own suspicion is that we’re going to penetrate the 10 percent barrier and stay there for a while before we start down”. “People who are out of work for very protracted periods of time lose their skills eventually,” he said. “What makes an economy great is a combination of the capital assets of the economy and the people who run it. And if you erode the human skills that are involved there, there is a real and, in one sense, an irretrievable loss.” Greenspan also expressed his concern over the growing size of the federal deficit and the federal debt.
Sen. Jon Kyl, R-Ariz. Appearing on CNN, said Democrats could best help the economy:
- by supporting targeted tax relief
- eliminating job killing legislation such as:
- the proposed cap-and-trade approach to climate change which will increase energy costs for all employers
- the health care reform bill which will raise taxes on small businesses
Don’t fall for the recovery line. We need to remain vigilant and continue to fight for fiscal responsibility. We must shut down the runaway government spending and let the free markets “fix” the economy.
As Thomas Jefferson said, “I sincerely believe… that the principle of spending money to be paid by posterity under the name of funding is but swindling futurity on a large scale.” And…“With respect to future debts, would it not be wise and just for [a] nation to declare in [its] constitution that neither the legislature nor the nation itself can validly contract more debt than they may pay within their own age, or within the term of 19 years? And that all future contracts shall be deemed void as to what shall remain unpaid at the end of 19 years from their date?”
Restore the Republic, Reject the Agenda of the Progressive Left!