Economics Update

Well, the jobless numbers came out, and they suck. The weekly numbers rose by 7,000 to 455,000, a 6 year high, when predictions were for a drop to 433K, and the 4 week moving average, which is less noisy, rose to 419,500, a 5 year high.

At least our misery has company, with the ECB holding rates steady, saying that "risks to economic growth were starting to materialize", which is a signal that Euro zone rates will remain steady.

Of course, our relentlessly optimistic financial press has to try to make s%$# into Shinola in housing, where they are touting a 5.3% month to month gain, which as Barry Ritholtz so eloquently notes, this is unmitigated crap, and driven by seasonal differences more than anything else, and the numbers are down year over year.

Additionally, we do not know how many of these are short sales in lieu of foreclosure.

We also have retail experiencing major suckitude now that the rebate checks have run out. To the degree that people are spending any more, it's on necessities, and they are running up their credit cards to do this, because the banks are cutting back on HELOCs.

Meanwhile, oil rose on supply concerns after Kurdish rebels blew up a Turkish pipeline, though gasoline is down for the 21st straight day.

In the world of insurance, the largest US insurer, American International Group wrote down more than $11 billion in holdings, and is making noises about selling more shares to raise capital.