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Drudge Retort: The Other Side of the News
Friday, September 30, 2022

Initial filings for unemployment claims fell last week to their lowest level in five months [193,000], a sign that the labor market is strengthening even as the Federal Reserve is trying to slow things down. The U.S. Bureau of Economic Analysis final estimate for Q2 GDP was a decline of 0.6%, unchanged from the previous two estimates. That was the second straight quarter of negative GDP, meeting a commonly accepted definition of a recession.

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The government blamed the worse-than-expected figure on declines in residential investments (or home buying), federal government spending and business inventories, but said an uptick in exports and spending helped economic activity improve from last quarter's decline of 1.6%.

Four of the six factors the National Bureau of Economic Research relies on to declare a recession - production, income, employment and spending - continued to signal expansion through May ... Like other economists, Wells Fargo senior economist Tim Quinlan isn't convinced economic indicators last quarter were indicative of a current recession, but he warns the economy is slowing and "it is starting to feel like [entering one] is only a matter of time."

The Fed's withdrawal of pandemic stimulus measures and interest rate hikes this year have fueled concerns of impending recession. This summer, Bank of America economists warned clients that prolonged inflation and the resulting interest rate hikes have unleashed a "worrying deterioration" in the economy, and particularly in the once-booming housing market. "The Fed has become more committed to using its tools to help restore price stability, with a willingness to accept at least some pain in the process," they said, predicting the economy will fall into recession over the next year.

www.forbes.com

This is an inflation-fighting, Fed-induced recession our economy is entering. The slowdown in the housing markets due to higher interest rates is one of the chief drivers currently.

But it's still incredulous that even rising interest rates have not put a dent in employment numbers as the Fed is trying to do. There are simply too many available jobs on the market and Republicans are making sure public benefits remain as skimpy as possible.

#1 | Posted by tonyroma at 2022-09-29 10:43 AM | Reply

Damn the GDP barely dropped. Can't bitch about this too much...

-righties

#2 | Posted by jpw at 2022-09-29 11:00 AM | Reply

Actually, more people are without power than ever before. More homeless than ever before. The tax credits and other help that were stopped in 2021 right before Christmas weren't re-instated. Jobs are not that easy to obtain without essentials to even exist. Food prices are still rising. Rent is rising. Gas is rising. Wages are not. Employed are not.

We've required a stimulus that at least covers one month of rent, but that hasn't happened.

From my understanding, unemployment claims does not equate to employed or obtaining wages, so this "sign" is being misread, imo.

#3 | Posted by redlightrobot at 2022-09-29 11:48 PM | Reply

Meanwhile, remember all those futile attempts to raise the Federal Minimum Wage? How quaint. The market trampled all over that level of chump change, making fools of all those on the Right who thought that sticking their fingers in a leaky ---- would hold back a flood...

#4 | Posted by catdog at 2022-09-30 05:37 PM | Reply

Initial filings for unemployment claims fell last week to their lowest level in five months [193,000], a sign that the labor market is strengthening even as the Federal Reserve is trying to slow things down.

Compare this to the bankruptcy-prone orange pedo's putrid record.

August 6, 2020, 8:44 AM ET
For 20 straight weeks, the number of Americans who have lost their jobs and filed for unemployment insurance has topped 1 million.

Oh my.

#5 | Posted by Reinheitsgebot at 2022-09-30 06:35 PM | Reply

All I will say is that this is just the start of the economic contraction. Housing will collapse. According to Zillow, my house is already down over $80K or 10% (according to Zillow) in the last 3 months. With Biden killing the stock market - Nasdaq off 33% from its peak, durable goods in the US will crater and be amplified by Europe's industrial and consumer spending collapse due to energy prices.

#6 | Posted by chrisirvine

Biden doing the things that need to be done that your short term thinking party never wants to do - popping bubbles.

Do you think the average working family can actually afford a half million dollar home? You liked having free money so corporations could just buy up all the houses in the country?

You think the stock market can just rocket up forever?

You think republicans could have protected us from WORLDWIDE inflation resulting from a WORLDWIDE pandemic?

Meanwhile Biden's investing in the things that will actually make us strong and secure in the long run - domestic industry. Something your party always talked about but never actually did.

#7 | Posted by SpeakSoftly at 2022-09-30 08:59 PM | Reply | Funny: 1 | Newsworthy 2

#7 | POSTED BY SPEAKSOFTLY

LOL! Did you visit your shrink this week? Did he/she/they/them adjust your meds?

#8 | Posted by SheepleSchism at 2022-09-30 09:04 PM | Reply

#9 | POSTED BY CHRISIRVINE

LOL

Way to chit the bed, you hack.

#10 | Posted by rstybeach11 at 2022-09-30 09:32 PM | Reply | Newsworthy 2

You think republicans could have protected us from WORLDWIDE inflation resulting from a WORLDWIDE pandemic?

And Putin's invasion of Ukraine, which upended energy markets, making the prices of everything higher.

Imagine if Republicans hadn't enacted tax credits for companies to move manufacturing offshore. Shipping snafus wouldn't be such an issue. Or corporate tax cuts they didn't use to increase wages, choosing instead to engage in stock buybacks, which only increased the size of the stock market bubble. Or done away with Glass Stegall, causing America's economy to crash and started the Fed's QE that began the bubble.

And we could go on ...

"Trickle down economics" have never done anything but make things worse in the long run.

#12 | Posted by AMERICANUNITY at 2022-10-01 02:45 AM | Reply | Newsworthy 2

Makes sense as with the high inflation those who have been 'sitting on the side' finally realized they had to take a job.

#14 | Posted by MSgt at 2022-10-01 11:56 AM | Reply

"If there was Trump, there would not have been an invasion. That is what the whole world knows."

Because Putin would own all of Ukraine by now.

Trump would have let him just walk right in and take it without a fight.

THAT is what the whole world knows. Especially Ukraine.

#15 | Posted by donnerboy at 2022-10-01 01:24 PM | Reply

Don't really care either way. The net effect of crashing housing will extend well beyond housing. A house is usually the source of most middle class families net worth. Well, that net worth is about to be cut in half - and that assumes you will even have a job to continue the mortgage payments and not get the house repo'ed and go to zero.

"You think the stock market can just rocket up forever?"

Rocket up? For 2 years under Biden, the inflation adjusted return is close to - 30%. He has been an absolute disaster - which is funny as he was bragging about the market setting new highs not that long ago. Now, silence.

"You think republicans could have protected us from WORLDWIDE inflation resulting from a WORLDWIDE pandemic?"

Yes.

"Meanwhile Biden's investing in the things that will actually make us strong and secure in the long run - domestic industry. Something your party always talked about but never actually did.
#7 | POSTED BY SPEAKSOFTLY"

Biden - at the very best - it just riding the coat tails of the Trump re-shoring of jobs. You know - those manufacturing jobs the idiot Obama said could never be brought back the US. Other than that, I see Biden investing in paying off useless liberal arts degrees and Ukraine. The Ukraine investment being the single most destructive policy in modern times. Wait till spring to see the full effects - it will be devastating. We will need a new Marshall Plan to save Europe, again.

#9 | Posted by chrisirvine

That net worth does them no good if they can't move anywhere with it because that property price will be equally inflated.

How is WORLDWIDE inflation biden's fault and what would trump have done to prevent it?

How come trump didn't pass any bills to bring jobs and industry home when he had all 3 branches of government instead of just passing tax cuts for the rich?

#16 | Posted by SpeakSoftly at 2022-10-01 03:37 PM | Reply | Newsworthy 3

CHRISIRVINE

Your knowledge of the stock market is obviously limited. Stock buybacks typically raise the price. When companies are buying, price goes up. And the less diluted shares are, the higher PE ratio, which spurs more to invest, thinking the gravy train will run forever.

No doubt there are a few fools who borrow money to buy stocks, but they're few and far between, regardless of interest rates.

NAFTA was negotiated under George HW Bush. Clinton signed the ratified treaty.

The worker shortage is the only reason wages have risen. Companies, who could have raised them long ago, didn't raise them because they wanted to, they raised wages because they've had to.

To refresh your memory, Obama entered office when America's economy was at the cliff's edge. With no help from Republicans, he turned it around and handed Trump a great economy.

Of course Trump took credit, but he'd take credit for ocean tides if he thought it would help him.


#17 | Posted by AMERICANUNITY at 2022-10-01 05:14 PM | Reply | Newsworthy 3

GDP didn't fall further because of Joe's wasteful spending. Propping up GDP with excessive spending is inflationary.

#18 | Posted by visitor_ at 2022-10-02 04:55 AM | Reply

GDP didn't fall further because of Joe's wasteful spending. Propping up GDP with excessive spending is inflationary.

#18 | Posted by visitor_

Saving lives during covid = wasteful spending

saving the world from worse climate change damage = wasteful spending

#19 | Posted by SpeakSoftly at 2022-10-02 04:04 PM | Reply | Newsworthy 1

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