Initial Jobless Claims Edge Down

Initial Claims for Unemployment Insurance fell by 6,000 this week to 462,000. However, the 4-week moving average, which is generally considered a better measure given the high degree of volatility in the weekly numbers, rose by 5,000 to 475,500.

{loadposition in-article}

Starting about a year ago, when the weekly level was at 657,000 and the 4-week average was at 646,750, initial claims began a steep decline that lasted until about the end of 2009, but so far this year they have been trending higher again.

The shape and pace of the decline last year was very similar to what happened after the recessions of ancient times, meaning before the 1991 recession. Following the 1991 and 2001 recessions, initial jobless claims followed a very different path, where after an initial drop they found a high plateau that lasted for well over a year.

Hopefully, the more recent rebound is not the start of that sort of high plateau again. Those were associated with very long periods of “jobless recovery. [Read the full article]

Now they need to pose it again. For this spring, something of a paradox is hanging over the mortgage-backed securities world. At the end of this month, the US Federal Reserve is due to freeze its programme to purchase Fannie and Freddie agency MBS that it implemented in the wake of the financial crisis. Logic might suggest that could potentially deliver a jolt to the market.

You have viewed your allowance of free articles. If you wish to view more, click the button below.

Now they need to pose it again. For this spring, something of a paradox is hanging over the mortgage-backed securities world. At the end of this month, the US Federal Reserve is due to freeze its programme to purchase Fannie and Freddie agency MBS that it implemented in the wake of the financial crisis. Logic might suggest that could potentially deliver a jolt to the market.

You have viewed your allowance of free articles. If you wish to view more, click the button below. [Read the full article]

Now that Citigroup and AIG are rolling in the bucks, GMAC is looking like the most egregious zombie bank of them all. A report released Thursday questions the wisdom of the government’s decision to spend $17 billion propping up the money-losing maker of car and home loans. The report, released by the Congressional Oversight Panel, noted that the White House thinks taxpayers will lose at least $6 billion on the GMAC bailout. Two members of the panel projected that losses could reach $10 billion, based on the expected cost of the bailouts of GM and Chrysler. But that’s not the worst of it. Thanks to Treasury’s decision to avoid a comprehensive restructuring of the company, pre-bailout shareholders in GMAC — including private equity firm Cerberus — could still profit on their investments, the report said. [Read the full article]

“It’s devastating,” says Mr Claggett. “We helped an 85-year-old woman who couldn’t get a loan modification. She lost the home that she lived in for 35 years”.

You have viewed your allowance of free articles. If you wish to view more, click the button below. [Read the full article]

You may also like...