Economics Update

It's jobless Thurdsay, and initial claims fell by 21,00 to 454000, which is still at least 100,000 too high for anything approaching a realistic recovery.

The less volatile 4-week moving average fell by 1250, and continuing claims fell by 224,000 to 4.41 million, though I am not sure if the latter might have been caused by the Senate delaying extended benefits.

Additionally, it looks like what Paul Krugman calls the "Invisible Bond Vigilantes," still appear not to exist, because the 30-year fixed mortgage rate has fallen to 4.57%, the lowest mortgage rate since Freddie Mac started keeping track of the data in 1971.

Note that even with the banks giving away money, people are still not buying houses now that the tax credit is basically done.

Hoocoocanode?

In other less than surprising news, the Bank of England has kept its benchmark rate at ½%, basically zero, so apparently they don't believe in the bond vigilante fairy either.