The US trade deficit rose in March, to 27.6 billion, on falling exports and the recent increases in oil prices.Imports fell by $1.6 billion, but exports fell by $3 billion.
We will not be, as the Japanese did, exporting our way out of this trade deficit.
This is one reason why the American Express/CFO Research Services survey has 59% of CFOs seeing more layoffs.
Of course, the fact that nationwide, US home prices fell the most on record, 14% year over year, and the only markets where home sales are rising are where vultures are sweeping in to buy cheap foreclosure properties.
On the bright side, the National Federation of Independent Business' monthly index of small business sentiment was up for the first time in 4 months.
It appears, however, that credit card company Advanta is not so optimistic. The company, which specializes in credit cards for small businesses, is shutting down its lending operations on June 10, after uncollectible debt exceeded 20%.
They are not shutting down, they are just shutting down all their credit lines, and just taking payments, which is awfully close to shutting down, so the credit cards just become so much plastic.
The deficit is not looking good either, with tax receipts so low that the federal government ran its first April deficit since 1983.
In energy, oil was up today, briefly breaking $60/bbl for the first time since November, before settling at $58.85/bbl.
This, along with banking changes and interest rate increases, is why the ruble is on a tear right now, and the US dollar fell to a 4 month low on comments by a number of experts that the recession is bottoming....Yeah....sure...
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