The big news today (at least in my mind) is the outsized jobless claims number of 573,000. This number confirms the view that the employment situation is worsening quite rapidly. I think we could see 7.2% unemployment next month given numbers of this magnitude.
In other news, a huge row is developing in Europe over whether Keynesian spending is a good thing. The Germans say no. The British say yes. Now, German Finance Minister Peer Steinbrueck has come out swinging, calling the British ‘crass.’ This has sent Sterling tumbling to 89 pence per Euro. Next stop Sterling – Euro parity.
And, if you are looking for a connection between geopolitics and economics, Russia may be a good place to start. Their economy is cratering with oil prices. What they do to deal with this turn of events will effect everyone globally. Other news stories can be found at our newsfeed. The newsfeed is also available via RSS.
Bloomberg.com: Russia Devaluation Gathers Pace as Central Bank Loosens Control
The Best and the Brightest Have Led America Off a Cliff | | AlterNet I don’t necessarily agree with what is being said here but I do find it interesting.
Deflation Descends Upon The U.S. – Forbes.com
Bloomberg.com: Pound Falls to Record 89 Pence Per Euro on Worsening Sentiment
Bloomberg.com: Treasury Bubble Talk Grows as U.S. Gets Free Money
Bloomberg.com: NAACP Sues Bush Administration Over Diverted Hurricane Funds
Is Cerberus Bluffing on GMAC? – DealBook – New York Times
Bloomberg.com: Aracruz Faces $2.13 Billion Deadline Over Derivatives (This is an interesting story of how this company racked up billions in currency losses)
Bloomberg.com: Central Banks Can Do Better Than Just Mopping Up: Caroline Baum