Economic data today was able to lift stock today as unemployment benefits dropped to an all-time low while housing surged. This is great news and hopefully it continues to grow and prosper. But in the end its just data. This article from the New York Times basically just talks about what stocks went up and the few that went down. A futures analyst said "“It’s great news and it should take the markets higher."
How much can you buy into this data let alone trust any markets in the United States at this point in time? In my opinion, everything is uncertain as to what is going to happen in the future because of the volatility of the markets here in the United States.
Wow, this is great news and I only hope that it can continue! I don't think we can buy into this data too much because they are always fluctuating. It seems too good to be true.
ReplyDeleteI agree that seeing these increases are a great sign but I can not help but be skeptical. Yes all of the data is good but a lot of economists like to look at the housing market as a positive or negative sign of the economy but since the housing bubble can we really trust it? Other countries are struggling right now and even though the United States struggle is going better then most, is that really good enough to signal a rising economy?
ReplyDeleteI agree with Brandon and Hannah in that, while this is somewhat encouraging, there is too much uncertainty to make long term predictions. I don't think any long term conclusions can be drawn from this data until the effects of the March 1st sequester are seen.
ReplyDeleteThe article states: "The number of Americans seeking unemployment benefits fell to a five-year low last week, the Labor Department reported, the latest sign that the job market is healing. Weekly unemployment benefit applications fell 37,000, to 335,000." At first sight, it may seem like this means there is job creation. However, "in order to qualify for benefits, an unemployed person usually must have worked recently for a covered employer for a specified period of time and earned a certain amount of wages." This is to say that some unemployed may just not qualify any longer. It would help to have better information and statistics on this topic. Any idea if employment is increasing? Or is it simply the case that the number of people on unemployment benefits are decreasing (due to unknown factors)?
ReplyDeleteI would be very interested in knowing the validity of this data. If the New York Times is indeed correct then I would say this is very good news. However, I hope that this recent confidence does not lead to another large bubble being built and then busted. Im not sure if the United States could handle another recession or even depression anytime in the near future.
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