Initial Jobless Claims (week ended 3/30/2013)
– New Claims (seasonally adjusted) 385,000. Previous was 357,000 – 4-week Moving Average. 354,250. Previous was 343,000 – New Claims (not seasonally adjusted) 314,016. The previous week was 1,595 more than that.
Challenger Job-Cut Report (March 2013)
– Announced layoffs were 49,255. Previous month was 55,356.
Lousy fundamentals have driven the 10-year yield under 1.8% this morning.
One of the worst ideas conceivable has been suggested by the Administration. Someone has decided that since the GSE’s are making profits it would be a good time to mandate their destruction once again. Read my piece on the National Homeownership Strategy and the idea to revise it from the Washington Post. The National Homeownership Strategy started out as a seemingly good idea but HUD constantly mandated that the GSE’s purchase an ever-increasing portion of bad loans.
The issue is the same as ever. Almost no one in Washington is capable of thinking beyond immediate results. Lowering lending standards may increase housing starts and construction jobs just when we need them to recover from the results of lowering lending standards to increase housing starts and construction jobs.
My thanks to Rob Chrisman for bringing this issue up yesterday.
“Those who cannot learn from history are doomed to repeat it.” – George Santayana
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