This picture is about as rosy as a boil on a butt.
The Commerce Department released its second estimate of economic growth in the first quarter, and as expected, the number got revised downward. The advance report a month ago showed Q1′s annualized growth number at 2.2%, down from 2011Q4′s 3.0%, a significant drop, but the second estimate pegs Q1 growth even lower at 1.9%:
Looks like the employment figures are not too good.
Private payroll growth accelerated only slightly last month and claims for jobless benefits rose last week, suggesting the U.S. labor market recovery was stalling after a strong performance early in the year.
"It shows we're in a lackluster period in the economy right now," said Wayne Kaufman, chief market analyst at John Thomas Financial in New York.
Job cuts jumped by 53 percent in May from April in the United States, with Hewlett-Packard’s layoffs propelling the computer industry to the top spot among the biggest job cutters this year, a report by consultancy firm Challenger, Gray & Christmas showed on Thursday.
Employers announced plans to cut 61,887 staff from their payrolls in May, 67 percent more than in the same month of last year. The figure represents the most job cuts since last September.
And the Euro crisis is still waiting to boil over...meanwhile Obama is in full campaign fundraising mode, nice leadership guiding the nation through these tough times, spreading divisive hate.
Thomas Sowell: There are no solutions, just trade-offs.
NEW YORK (CNNMoney) -- U.S. stocks were lower early Thursday, the last day of a wretched month that saw Treasury yields in the U.S. fall to record lows, while Spain and Greece kept contagion worries front and center.
Thursday's declines were driven by a batch of weak U.S. economic data, including reports on U.S. initial jobless claims and regional manufacturing, which cast a cloud over hopes that the domestic economy is improving.
Meanwhile, gross domestic product for the first quarter was revised lower to 1.9%.
The Dow Jones industrial average (INDU) dropped 54 points, or 0.4%, the S&P 500 (SPX) lost 10 points, or 0.8%, and the Nasdaq (COMP) shed 29 points, 1%.
I'm not sure what the Obama Administration is going to run on in the upcoming election or if it's even important that he has a theme at all since most of the same people who voted for him last time will do so again for the same twisted reasons.
Not sure how the media is going to put a positive spin on the employment, European and stock market news either...but it's high time they got to work before their man loses the independent voter. Thank God for the fawning media otherwise the Obama campaign would be in real trouble here.
Bearish Close to Brutal May
U.S. stocks fell Thursday, with the Dow Jones Industrial Average on track for its first monthly loss in eight, as Wall Street added disappointing labor market data to its European worries.
The Dow Jones Industrial Average fell 42.23 points, or 0.3%, to 12,377.63, off 6.3% from the end of April, and on track for its worst month in two years.
FORTUNE -- Investors have long found safety in gold, but the precious metal has been losing luster as Europe's ongoing debt crisis intensifies. As of Thursday morning, gold was down 7% this month, at $1,560.90 an ounce.
This isn't the first time gold has fallen when markets turn shaky. During the depths of the global financial crisis, the metal dropped by 20%. A few factors drove the decline: As the U.S. financial system nearly collapsed, investors took their money out of stocks and poured them into U.S. Treasuries. And institutional investors, faced with losses on U.S. investments, liquidated overseas assets to meet margin calls or broker agreements. Finally, as banks clamped down on lending, money became scarce.
Warning, tighten your belts, America’s new Age of Austerity is already here, today. There I said it. I admit it. And you better too. Prepare now. Could be like the 1930s depression austerity.
You’ve seen the warnings all across the major newspapers about a global slowdown. But why no warnings of austerity dead ahead? Why? America’s still deep in denial. We prefer happy talk to the truth. No, nobody will get honest about austerity till after the elections. Then it’ll hit hard.
Is this guy all doom and gloom? President Obama hasn't mentioned anything about another slowdown so we should be covered.
First, our world is full of constant hype and happy talk: Wall Street’s reports, rhetoric and pitches are known to be upbeat 93% of the time. Washington politicians and corporate CEOs are equally suspect.
But the real reason most of us need constant reminders is that we’re gullible, distracted, forget and, unfortunately, we all really do want to believe the world full of good people telling us the truth. But sadly, 93% of the time they’re likely manipulating us
But perhaps most of all, impacting everything, the extreme, accelerating irrationality driving our angry political wars will further undermine an already stagnant economy, until a 1929-style crash takes down the markets and the economy.
So who do I want as President if the ship hits the shoals? Hmmmm.
lionshead2010 wrote: I'm curious just WHO this current economic model is working for? Seriously, who?
Investors....those very people who think it is Republicans that lift the stock market when actually democrats do that. As someone who is retired, living off investments, we are certainly better off today than we were in 2008.
Gripe as you may about President Obama and the economy, he’s been good for stocks. And if history is a guide, he’ll be just as good if re-elected. Dozens of research papers have concluded that the stock market performs noticeably better during Democratic administrations than it does during Republican ones.
