Economics Update

The employment data is done for the week, so we have energy news, where Oil, after breaking $135/bbl then settling around #131, is now back above $132/bbl, and gas prices are trending up again, though some of the latter is no doubt due to the upcoming 3 day weekend.

The dollar is trending down against all major currencies, hitting $1.5755:€1.0000, a bit below the $1.60 record, but not by much.

In real estate, we have existing home sales falling 1% in April, no signs of the foreclosure rate abating, and inventories soaring.

Is it any wonder that mortgage lenders are tightening standards to where they were a few deccades back?

This credit tightening is going to take an economy already in recession^*, and throw it down a well.

On the brighter side, it appears that the municipal bond market has finally shaken itself out a bit, recovering from the auction rate security implosion of a few months back.

^*Yes, I know that it's not official yet, but we know the reality when it bites us on the ass.