And The Band Plays On: Consumer Comfort Rises, Jobless Claims Fall, and Firms Cut Jobs

Confounded Interest ^ | 03/07/2013 | Anthony B. Sanders

[whitedog57]

Another day in a Fed-induced zero-interest rate policy (ZIRP) world with the Federal government taxing and regulating like there is no tomorrow. Obamacare taxes and regualtions, withholding tax increases, EPA regulations (remember when Ping golf clubs proudly has a Made in USA label? – no mas.)

The Bloomberg Consumer Comfort index improved to its highest point this year! Unfortunately, we are back to 2008 levels.

Initial jobless claims declined to 340,000, greater than the expectation. Jobless claims are improving and are back to 2007 levels.

On the other hand, Challenger job cuts announcements (YoY) rose +7.0%.

The reaction in markets? The Dow is up 44.52 as of 11:37am and

the 10 year Treasury yield rose 4.7 basis points.

And palladium rose 2.50 this morning.

And The Fed continues to purchase US Treasury debt.

And the band plays on!

[whitedog57]

Economy barely limping along, Fed keeps printing.

[massgopguy]

Jobless claims are falling as firms cut jobs? Hmm, maybe firms are saving by firing for cause. Any cause. “Your performance did not live up to the person you replaced.”

[qman]

Heard Cudlow say weds night that since, Jan 1 the fed has increased the money supply by 66%. At what point does the money supply start to look like Zimbabwe, or 1920’s Germany. The only thing that seems to be saving us is the velocity of money is low because of regulations and Obamacare fears!

[AzSteven]

I am starting to realize that all of the old measurements, standards and expectations are no longer applicable to the economy. The combination of massive automation giving us increased productivity with fewer workers, and the ever-expanding government teat that lets people live without working both seem to combine to mask and confuse things, confounding expectations based on previous downturns and upturns.

Maybe this really is the New Normal. Even if government regulations free up manufacturing businesses for dramatic expansions, will they have a need to hire a lot of new people?

[dfwgator]

And the band plays on!

Politicians say "More taxes will solve everything."

[Buckeye McFrog]

Hmm, maybe firms are saving by firing for cause

Or maybe they're following the lead of Yahoo's CEO and inducing them to quit?

[Mr. Jeeves]

They’ll lie until they can’t - and then it will be all our fault so they will have to shoot us.