JOBLESS CLAIMS AT LEVELS PRIOR TO 2000 AND 2008 COLLAPSES

Jon Blogosphere, Controlled Media, Economy, Market Commentary, Real Estate

The MSM was blathering about unemployment claims being at 2006 levels today. The market celebrated by dropping 300 points. The busy chart below shows the fascinating economic recovery we’ve experienced since the last time unemployment claims were this low. Average wage growth has stayed below the level of inflation. Real median household income is still 8% lower than it was in 2007. Mortgage applications are at 1997 levels. But Wall Street has somehow engineered higher home prices with no one applying for mortgages and millions of people taking home less pay.
Shortly after jobless claims reached today’s levels in 2000, the S&P 500 fell 45%.
Shortly after jobless claims reached today’s levels in 2007, the S&P 500 fell 55%.
This is as good as it gets with jobless claims.
Guess what happens next.

This post was published at The Burning Platform on October 9, 2014.