If the euro crisis represents a threat to the U.S. economy (and it does), it’s not putting upward pressure on new jobless claims–at least not yet. New filings for unemployment benefits dipped again last week to a seven-month low of 388,000 on a seasonally adjusted basis. We’re still not at the post-recession low reached in this cycle (375,000 in late-February), but the old trough is now within shouting distance.
Daily Archives: November 17, 2011
Europe’s Central Banking Crisis
The optimists expect that the European Central Bank will do the right thing… eventually. Perhaps, but would a philosophy transplant at this late date make a difference? Year-over-year growth in euro monetary aggregates is growing at a snail’s pace of around 3%. That hardly comes close to what’s needed for an economy that’s suffering from a banking crisis, high unemployment (10% plus), rising bond yields, and the likelihood that the Continent is dipping into a new recession. The austerity-now movement is courting disaster.