Economics Update

First, initial unemployment insurance claims increase, ba by 35K to 380K. Note that this is an inherently noisy figure, but it's been bad for over a month, which indicates a trend.

Becasue of the Fed's signals regarding future rate cuts, as na ga na do it, the dollar has strengthened, and oil has fallen a bit.

That being said, the Euro zone appears to be under increasing stress from the different economic trajectories of its members.

Citi appears to need more money, so it's raising it through a $4½ billion stock offering, further diluting its stock holders equity.

Seriously, it's like a dog chasing its own tail...down the drain.

We have a number out of San Diego, with house prices off dropping 19.2% since February 2007.

This means that if someone bought a 30 year fixed mortgage, with 20% down, that they would be under water on the loan if closing and broker costs are included.