Unemployment Hits 5.5% in May

The unemployment rate rose a half of a percentage point to reach 5.5% in May. This is the biggest monthly rise in 22 years. The Dow gave up all (and more) of yesterday’s triumph of hope over experience.

Other bad news:

  • Oil jumped nearly $11 to close at a record $138.54 a barrel today.
  • Home foreclosures reached a record high in the first quarter of 2008 to nearly 1% of all homes.
  • Lehman is looking to raise another $5 billion to shore up a teetering balance sheet.
  • The dollar dropped to a weekly low on speculation that the Fed will not hike interest rates due to the weak employment data.
  • And so on. Remember this is just beginning…

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    One Response to Unemployment Hits 5.5% in May

    1. The Lizard says:

      I have to disagree with your sentiments that the economy is tanking hard. This three days of bad news came on the heels of some very good news. The dollar is slightly stronger. The GDP continues to climb meaning there is economic growth. While the unemployment rate increased so did the jobs report. While the economy is in a slowing mode it is by far no where near collapsing.

      I find it hard to believe that someone supporting the DEMS would have the nerve to complain about the cost of a barrel of gasoline. The DEMs promised and energy policy to bring gas prices under control. Instead we have prices almost twice as high now then they were before the do nothing democrats won control of the legislative body. In fact the DEMs just got defeated in their attempt to increase the cost of a gallon a gasoline by another 50 cents.

      Once the deadbeats (like Laura Richardson (D)) are foreclosed on we will be able to get our housing market back in order. This will happen over the course of the next two quarters.

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