I remember doing the same back-of-the-envelope analysis in the early days of the blog and coming up with similar numbers.
So, now, today's numbers.
Barron's and Reuters: both had the same story line.
The number of Americans filing new claims for unemployment benefits unexpectedly rose last week, reaching a four month-high and potentially hinting at some cooling in demand for workers amid tightening financial conditions.
So, what were these astronomically high numbers?
Initial claims for state unemployment benefits increased 21,000 to a seasonally adjusted 218,000 for the week ended May 14, the highest level since January. Economists polled by Reuters had forecast 200,000 applications for the latest week.
Give me a break. Does this really get you excited?
Initial claims for state unemployment benefits increased 21,000 to a seasonally adjusted 218,000 for the week ended May 14, the highest level since January. Economists polled by Reuters had forecast 200,000 applications for the latest week.
In other words, one word that describes today's numbers: yawn.
My hunch: Reuters and Barron's are trying to avoid discussing the elephant in the room: $10-gasoline.
The problem is not going to be a shortage of workers (that will be bad enough), the big problem will be with workers having enough money to be able to afford gasoline to get to work in the first place. Amazing how Reuters and Barron's avoiding the elephant in the room.
Interestingly enough, the bigger problem may not be the high price of gasoline, but adequate gasoline to meet demand.
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